Levels of management

The levels of management focus on the tasks they perform and the competences that leaders at each level should have. Adequate matching of employees and their competencies to the positions they hold is an important part of achieving the company's objectives . Depending on the scope of responsibilities, we can distinguish three levels of management. We distinguish:

• the highest level of management, consisting of a board of directors and a president taking key decisions for the company,
• medium level of management including heads of unit, who take tactical decisions,
• low level of management by managers who are responsible for supervising and carrying out the tasks defined by the higher levels of management.

High-level management

At the highest level of management, which is the so-called top management, there are high management staff, which is responsible for the control and supervision of individual processes. This group is responsible for formulating strategic objectives and plans. In addition, it is on their side to develop such an organisational policy that will contribute to the achievement of previously defined objectives. Among all levels of management, they have the greatest authority, but also the greatest responsibility for all decisions. In addition to the top level management functions already mentioned, the following are also mentioned:

• collection and management of both financial and human resources,
• broadly understood leadership in the company,
• the establishment of plans and timeframes for the tasks to be carried out.

Middle-level management

The next level of management is middle management, which consists of managers of individual organisational units. In addition to their advisory functions, they are also responsible for the tasks carried out by the department they manage. They define strategies at functional level and also "make tactical decisions related to the organisation as a whole on the technical, financial, organisational and human resources side of the business". The duties of a middle manager include:

• representing the enterprise externally in an appropriate manner, not only in the performance of its tasks, but also in terms of its appearance or expression.
• taking care to increase economic benefits for both the company itself and its shareholders
• building appropriate attitudes and values among employees
• caring for the well-being of their subordinates, taking into account their needs and ensuring that employees at lower levels are properly motivated and supported
• striving for the development of the company and its expansion

Low-level management

The last level of management is the managers of individual units located directly above the persons performing the tasks. They are responsible for the implementation of the assigned tasks in the area of a specific department. Such managers have no influence on the creation of objectives or strategies. Their task is limited to the division of duties between employees. At this level, the manager has direct contact with the person performing the task. The tasks undertaken by the manager are carried out in the short term.

Examples of Levels of management

• Executive Level: Executives are the leaders of the organization, responsible for making strategic decisions, developing the organization’s vision, and managing the overall operations. Examples of executives include the CEO, CFO, COO, and other members of the executive team.
• Senior Management Level: Senior managers are responsible for leading, managing, and directing large teams and departments. They are responsible for making sure the organization is meeting its goals and objectives. Examples of senior managers include the VP of Marketing, VP of Sales, VP of Human Resources, and other high-level managers.
• Middle Management Level: Middle managers are responsible for supervising and managing the day-to-day operations of a business. They are responsible for delegating tasks, setting objectives, and measuring performance. Examples of middle managers include department heads, supervisors, and operational managers.
• Supervisory Level: Supervisors are responsible for overseeing and directing the work of employees. They are responsible for providing guidance and support to employees, as well as enforcing policies and procedures. Examples of supervisors include shift supervisors, team leaders, and production supervisors.
• Operational Level: Operational employees are responsible for carrying out the specific tasks necessary for the organization to achieve its goals. They are responsible for executing the day-to-day activities. Examples of operational employees include customer service representatives, cashiers, and assembly line workers.

Advantages of Levels of management

The levels of management provide a useful framework for organizing the hierarchy of an organization and helping to ensure that tasks and responsibilities are delegated down through the hierarchy. There are several advantages to this approach, including:

• Greater clarity of roles and responsibilities: By defining the different levels of management, each employee will be aware of their job duties and the roles that they need to fulfill.
• Improved communication and co-ordination: With the different levels of management having distinct roles, it becomes easier to ensure that communication and co-ordination are effective throughout the organization.
• More effective decision-making: By having clear roles and responsibilities, decisions can be made more efficiently and effectively, as each level of management is aware of the decisions that need to be taken and by whom.
• Improved performance: With the right structure in place, it becomes easier to monitor performance and identify areas for improvement. This helps to ensure that the organization is achieving the best results possible.

Limitations of Levels of management

The levels of management have several limitations. These include:

• The assumption that all levels of management are the same. Each level of management has different tasks and responsibilities, and competencies that must be met for successful operations.
• The lack of consideration for the complexities of modern organizations. The traditional model of management does not account for the changing nature of today's organizations, which often have multiple layers of authority and responsibility.
• The focus on individual and team performance rather than organizational performance. The traditional model of management focuses on individual and team performance, rather than on the overall effectiveness of the organization.
• The lack of flexibility. The traditional model of management is rigid and inflexible, with little room for adaptation to changing circumstances.
• The lack of focus on innovation. Traditional models of management do not adequately address the need for innovation and creativity in the workplace.

Other approaches related to Levels of management

To further explore the levels of management, there are several other approaches which can be taken. These include:

• Task-based management - This approach focuses on the tasks and activities that need to be completed at each level of the organization. It helps to ensure that the right competencies are in place to ensure the successful completion of these tasks.
• Competency-based management - This approach focuses on the specific competencies that are needed by each level of the organization. It helps to ensure that the right people are in the right positions and that they have the necessary skills to accomplish their tasks.
• Process-based management - This approach focuses on the processes and operations that need to be implemented in order to achieve the organization's objectives. It helps to ensure that the right people are in the right positions and are performing their job duties in the most efficient manner possible.
• Strategic-based management - This approach focuses on the strategic objectives of the organization. It helps to ensure that the organization is taking the necessary steps to reach its goals, and that the right people are in the right positions to accomplish these goals.

In summary, these approaches all focus on the different aspects of levels of management, and how the appropriate competencies and processes need to be in place in order to successfully achieve the organization's objectives.

Footnotes

Levels of management — recommended articles

Centralized organizational structure — Principles of delegation — Front line management — Bureaucratic leadership — Theory of management — Organizational dependence — Staff authority — Principles and features of organizational structure — Forms of organisation

References

• Glamuzina M. (2015), Levels of leadership development and top management's effectiveness: Is there a clear-cut realtionshop?, "Management", vol. 20
• Johnson S., Rashmi K. (2016),Top level manager: Skills, functions, tasks, approaches, responsibilities and roles "Asian Journal of Management Research", vol. 7
• Pal K. (2019), Management Concepts and Organizational Behaviour
• Tyrańska M. (2016), Managerial Competencies for Various Management Levels "Zeszyty Naukowe Uniwersytetu Ekonomicznego w Krakowie", 11 (959)

Author: Julia Kręcioch