LEVELS OF MANAGEMENT (TOP, MIDDLE AND LOWER LEVEL MANAGEMENT)

Every firm, regardless of its size, has a large number of managerial positions that are filled by managers of different levels. 

These levels of managerial positions are created as a result of the delegation of authority from the top to the bottom which means one managerial position is different from another.

The term "level of management'' is used to refer to the different categories of managerial positions that exist in an organization. 

It is the hierarchy of management positions that exist in an organization from top to bottom.

They are three levels of management that cab exists in any organization, namely:

1. Top-level management.

2. Middle-level management.

3. Lower-level management. 

Top-level management

This set the overall goals and objectives of the business and the policies to be followed to achieve these goals and objectives. 

They devote most of their time planning and coordinating activities of the organization.

They serve as the ultimate source of authority in the business and have the ability to exercise control over it. 

In most organization, the top-level management set policies and determine the type of policy to be pursued by the organization 

Top-level management is also referred to as administrative or higher-level management. 

Board of Directors (B.O.D), Chief executive officer (C.E.O), Managing director (M.D), Chief financial officer (CFO), and Chief operating officer (COO), owners,  shareholders are top-level management titles.

Functions of the top Management

Generally speaking, top-level management performs the following roles:

1. They laid down the overall objectives and policies of the organization, taking into account the organization's size.

2. They sanction the budget of the organizations.

3. They are involved in the strategic planning of the organization.

4. They appoint and evaluate middle-level managers.

5. They make decisions that are critical to the organization's survival, profitability, and expansion, such as the introduction of a new product.

6. They are primarily accountable to the owners of the business, which in most cases is the shareholders of the business.

7. They are closest to the outside world of the organization. As such, they liaise with various stakeholders of the business

8. They exercise control over the business

9. They provide overall leadership to the organisation.

Middle-level Management

This translates the top-level management's plans into departmental goals for each department. 

Middle management devotes more time to the functioning of their respective departments inside the organization

Middle-level management includes branch managers and departmental managers (such as sales managers, marketing managers, purchase managers, production managers etc). 

Middle-level management serves as a link between top-level management and lower management.

Functions of the middle management

1. They carry out the organization's plans in conformity with the policies laid down by top management

2. While top-level management makes plans for the whole department of the organization, middle-level management makes plans for each of the organization's sub-units.

3. They recruit and train lower-level managers.

4.  Middle-level management serves as a communicator between top-level management and lower-level management, explaining top-level management's policy decisions to lower-level management

5. They receive and disseminate reports and other essential data from lower-level management to top-level management.

6. They evaluate the performance of lower-level managers and report back to the top-level management for further analysis.

7. They not only evaluate the performance of lower-level managers but also motivate and inspire them to work more efficiently.

8. They make suitable recommendations to the top-level management for the execution of plans and policies.

Lower-level Management

The supervisor, foreman, and section officers who are primarily concerned with the controlling and organizing function of management make up the lower level or supervisory management.

R.C davis definition of supervisory or lower-level management

The majority of lower-level management functions are supervisors. 

Functions of the lower Management

Low-level management have the following responsibilities:

1. They are in charge of supervising, guiding, and instructing workers daily.

2. They ensure that work is completed in a timely and effective manner

3. They are primarily involved in organizing, which entails assigning work and responsibilities to employees

4.  They provide periodic reports on non-managerial workers' performance to the middle-level managements 

5. They transmit non-managerial workers' suggestions and problems to senior management.

6. They provide junior workers with training and other materials (such as material, machines) that they need to carry out their job effectively and effectively.

7. To ensure discipline and teamwork, they maintain a constant personal touch with employees.

8. They convert plans of middle management into short-range plans or operating plans.

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BOTTOM LINE

These three levels of management taken together form the hierarchy of management

It shows the managerial ranks and positions in the hierarchy. It demonstrates that middle-level management reports to top-level management, while lower-level management reports to middle-level management. 

In other words, it shows that accountability flow from the bottom (low-level management) to the top (top-level management) while authority flows from top to bottom.

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Meanwhile, put your knowledge into action by practising this quiz

Foremen are part of _____ management






see explanation 

The lower management consists of foremen and supervisors who see to the fact that non-managerial staff perform task delegated to them

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