Commerce · Ch 1 — Principles of Management
Levels of Management
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Levels of Management
In any organisation of reasonable size, the work of management is distributed across a hierarchy commonly described in three broad levels, each with a different mix of responsibilities.
| Level | Who | Main responsibility |
|---|---|---|
| Top management | Board of Directors, Managing Director/CEO, General Manager | Determining the overall objectives and policies of the enterprise; long-term planning; coordinating the activities of different departments; representing the organisation to the outside world (government, shareholders, public) |
| Middle management | Departmental heads (production manager, sales manager, finance manager), branch managers | Interpreting the policies framed by top management into departmental plans; coordinating the activities of their own department; sending performance reports upward and instructions downward |
| Lower/supervisory (operational) management | Foremen, supervisors, section officers | Directly overseeing the work of operative employees, ensuring quality and quantity of work, maintaining discipline, acting as the vital link between management and workers |