CHAPTER “Remember the difference

between a boss and a

3
[Please insert any leader: a boss say go – a
relevant photo leader says “Let’s go”! –
around this box] E.M.Kelly

Management Levels
Subtopics:-
3.1 Top Management
3.2 Middle Management
3.3 First-line Management
3.4 The Roles of Each Levels
3.5 Discussion Questions

3.1 TOP MANAGEMENT

Basically, being a manager is not just being a boss. In the business world today, companies
are looking for much more than bosses. They want managers who understand technology,
can adapt quickly to change, skilfully motivate subordinates and realise the importance of
satisfying customers. Thus, the management functions can be divided into 3 levels,
according to the varying level of responsibilities.

Top management

The top manager determines the mission and sets the goals for the organization. They spend
most of their time on the functions of planning and organizing. Top management is
accountable for the overall management of the organization. Responsible for the
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performance of all departments and have cross-departmental responsibility. Example:
Chief Executive Officer, Chief Financial Officer, Governor, Mayor, president, chairman and
Vice executive president.

3.2 MIDDLE MANAGEMENT

Middle management

Supervise first-line managers. Middle management implements top management goals.

They are also responsible to implementing the strategies, policies and decision made by
top manager and responsible to deliver information about operation in the low-level
manger to top manager. Example: Regional Manager, Division Head, Director, Dean, Head
of Department, Branch Manager and Functional Manager.

3.3 FIRST-LINE MANAGEMENT

First-line (supervisory) management

Supervisors are managers whose major functions emphasize directing and controlling the
work of employees in order to achieve the team goals. Responsible for day-to-day
operation. They are the only level of management managing non-managers. Thus, most of
the supervisor's time is allocated to the functions of leading and controlling. Supervisors
direct the actual work of the organization at the operating level. Example: Supervisor,
Group Leader, Section Chief.

Figure 3.1: Management Hierarchy

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3.4 THE ROLES OF EACH LEVEL

A. Top management roles

High level managers tend to have a substantial amount of experience, ideally across a
wide variety of functions.

Many high-level managers become part of an executive team by mastering their functional
disciplines across various roles, becoming the Chief Operations Officer (COO), Chief
Marketing Officer (CMO), Chief Technology Officer (CIO or CTO), Chief Financial Officer
(CFO) or Chief Executive Officer (CEO).

Top management teams are also often industry experts, having a close association with the
long-term trajectory of the businesses they operate in. They often benefit from being
charismatic, powerful communicators with a strong sense of accountability, confidence,
integrity, and a comfort with risk.

Responsibilities

The primary role of the executive team, or the top-level managers, is to look at the
organization as a whole and derive broad strategic plans.

Company policies, substantial financial investments, strategic alliances, discussions with the
board, stakeholder management, and other top-level managerial tasks are often high-risk
high return decision-making initiatives in nature.

Top-level management roles are therefore often high stress and high influence roles within
the organization.

B. Middle management roles

Most organizations have three management levels: first-level, middle-level, and top-level
managers. These managers are classified according to a hierarchy of authority and
perform different tasks. In many organizations, the number of managers in each level gives
the organization a pyramid structure.

Middle management is the intermediate leadership level of a hierarchical organization,

being subordinate to the senior management but above the lowest levels of operational

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staff. For example, operational supervisors may be considered middle management; they
may also be categorized as non-management staff, depending upon the policy of the
organization.

Responsibilities

Middle managers’ roles may include several tasks depending on their department. Some
of their functions are as follows:

 Designing and implementing effective group work and information systems

 Defining and monitoring group-level performance indicators
 Diagnosing and resolving problems within and among work groups
 Designing and implementing reward systems
 Supporting cooperative behavior
 Reporting performance statistics up the chain of command and, when applicable,
recommending strategic changes

Because middle managers work with both top-level managers and first-level managers,
middle managers tend to have excellent interpersonal skills relating to communication,
motivation, and mentoring. Leadership skills are also important in delegating tasks to first-
level managers.

Middle management may be reduced in organizations as a result of reorganization. Such

changes include downsizing, ‘delayering’ (reducing the number of management levels),
and outsourcing.

The changes may occur to reduce costs (as middle management is commonly paid more
than junior staff) or to make the organization flatter, which empowers employees, leaving
the organization more innovative and flexible.

C. First-line management roles

At the first-line, managers are often highly skilled and even functional specialists. A first-line
manager is best positioned when they focus on controlling and directing specific
employees (think in terms of supervisors, team leaders, line managers, and project
managers).

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Core skill sets for first-line managers can change depending on what function they are
overseeing. However, on the interpersonal side they should be effective at:

 Communicating
 Observing and actively listening
 Giving and receiving feedback
 Prioritizing
 Aligning resources
 Organizing processes and tasks

Responsibilities

Responsibilities of a frontline manager will therefore come in two flavors. The first is the
expertise required to do whatever it is they are managing.

If we are talking about an accounting manager, they must be able to balance the books
and understand enough of everyone’s specific function to fill the gaps.

If it is a frontline manager on an automobile manufacturing facility, the manager should be

aware of how to run most of the machines and how to assess the productivity of different
positions (ideally from experience).

On the managerial side, first-line managers are often tasked with hiring, assessing
performance, providing feedback, delegating functional tasks, identifying gaps,
maximizing efficiency, scheduling, and aligning teams.

As the primary point of contact for most employees, frontline managers must be careful
listeners capable of understanding employee needs, removing blockers, and optimizing
performance.

3.5 DISCUSSION QUESTIONS

1. Differentiate the THREE (3) levels of management.

2. List Five (5) top management level positions in an organization.
3. Describe the roles of middle management level.
4. Discuss the responsibilities of first-line management level.

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