Three Levels of Management: Top, Middle & Lower


Three Levels of Management

Levels of Management are a term referred to line of differentiation among various administrative positions in a company. The levels may increase as and when the size of the business increases and vice versa. Level of Management determines the chain of control and the quantity of power and position that is given to any management role to an individual in an organization. Levels of Management are broadly classified into three:

1. Managerial or the Top Level Management: This level consists of the board of directors and managing director. It is the supreme source of power since it manages the policies and procedures of an entity. Their main responsibility lies in planning and coordinating. The roles and responsibilities of this ‘creamy’ level can be summed up as follows:

(a). It is at this level that all the objectives and major policies are laid down.

(b). Instructions are given for preparing the necessary budgets for various departments, schedules and policies.

(c). Preparation of premeditated plans and policies are done at this level.

(d). Appointment of executives at central level or departmental heads.

(e). Since it consists of Board of Director the top administration is accountable towards the shareholders for performance of the organization.

(f). Harmonization and control are the two major roles played by the top management.

(g). It guides the organization in the right direction towards achieving the goals and objectives.

2. Executive or Middle Level Management: The line and departmental managers form this level of management. These people are directly accountable to the top management for functioning of their respective departments. Their main role comes under the directional and managerial functions of an organization. The roles of managers at this level are as follows:

(a). The main role lies in the implementation of policies and plans as per the directives of the top management.

(b). Preparing plans for the sub units of their respective departments.


(c). Actively contribute in guidance and employment of supervisory level of management.

(d). Their duty is to understand and elucidate the policies of the top management to the lower management.

(e). Bringing together the activities within the department is another role at this level of management.

(f). Assessment of performance of junior managers.

(g). Timely and important reports or data to be sent to the top management.

(h). Motivation of supervisory managers is a vital role of this level of management.

3. Supervisory or Operative Level Management: This level constitutes mostly of supervisors, foremen and first line managers. The main role of these people are:

(a). Handing over jobs or responsibilities to a variety of workers.

(b). Guidance towards day to day activities of the organization.

(c). These managers are directly responsible for quality and amount of production.

(d). They act as mediators in communicating the problems of workers and also undertake recommending solutions to higher level of organization.

(e). They take stock of the machines and material required for the work to be done.

(f). They are the role models for the workers as they are directly and constantly in touch them.

(g). It is their duty to uphold discipline and decorum in the organization.

∗ Now Let us know about how to represent this in a diagram, representing the three levels of management for better understanding:

Levels of ManagementImage Title: Three Levels of Management