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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.

LevelWhoMain responsibility
Top managementBoard of Directors, Managing Director/CEO, General ManagerDetermining 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 managementDepartmental heads (production manager, sales manager, finance manager), branch managersInterpreting 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) managementForemen, supervisors, section officersDirectly overseeing the work of operative employees, ensuring quality and quantity of work, maintaining discipline, acting as the vital link between management and workers