Levels of Management in an Organization

The levels of management increase with the increase in size of an organization. There can be broadly three levels of Managers in an Organization

  1. Top Managers
  2. Middle Level Managers
  3. Low level / First-Line Managers

First-line managers: They are sometimes referred to as ‘Supervisors’ or even Foreman. They are at the lowest level of management and having the least authority. They directly manage the work of non-managerial individuals who are involved with the production work. They act as a link between Middle level managers and non-managerial employees in an organization.

Middle-level managers: They directly supervise the First level managers. They consist of all levels of management between the first-line level and the top level of the organization. These managers may have titles such as department head, project leader, plant managers, or division manager. Middle managers are mainly responsible for implementing overall organizational plans so that organizational goals are achieved as expected or desired. They are responsible for Implementing changes or strategies generated by top managers. The trend of adding layers of middle managers is decreasing as companies reduce the number of levels in the managerial hierarchy to reduce the costs.

Top managers: They are the managers at the very top levels of the hierarchy in an organization who have the most authority and who are ultimately responsible for the functioning of entire organization. They are those who are responsible for making organization-wide decisions and establishing the plans and goals that affect and drive the entire organization. These individuals typically have titles such as vice president, president, managing director, chief operating officer (COO), chief executive officer (CEO), or chairman of the board. They oversee overall planning for the organization to achieve desired goals, work with middle managers in implementing and planning, and maintain overall control over the progress of the organization. They are responsible for the overall direction of the organization and for creating the context for change. They develop in employees the attitudes of commitment and create a positive organizational culture through language and action.