Levels of management

The essentials

The levels of management refer to the chain of authority and responsibility running from the top to the bottom of an organisation (the hierarchy). There are three levels: top management, middle management and supervisory or operational (first-line) management. Authority and responsibility flow downwards, and each level has its own role.

Key points

• Top management: the chairman, chief executive officer, managing director, president and their team. They integrate diverse elements, set overall objectives and strategies, are responsible for the welfare and survival of the organisation, and analyse the business environment. Their job is complex and stressful.
• Middle management: heads of departments such as the production manager, marketing manager or finance manager. They interpret the policies made by top management, ensure that their department has the necessary personnel, assign duties, motivate employees and coordinate with other departments. They link top and lower levels.
• Supervisory management: foremen and supervisors. They directly oversee the efforts of the workforce, maintain the quality of output, reduce wastage, ensure safety and pass on workers' grievances to higher levels. They act as a link between workers and middle managers.

Exam tips

• Read the duties carefully in case questions. Framing overall policies points to the top level; interpreting those policies and coordinating departments points to the middle level; direct contact with workers points to the supervisory level.
• Supervisors are the level that interacts most with the actual workforce.

Common mistakes

• Treating directors and heads of departments as the same level.
• Thinking supervisors frame policies. They only carry them out on the shop floor.