1.02 Management up close

All but the smallest of businesses have more than one manager. Some large businesses have hundreds of managers. In these types of businesses, there are many levels of management, and each level has very different responsibilities and authority. The three main levels of management are: top-level (executive) management, mid-level (middle) management, and first-line  (supervisory) management.

Top-level (executive) management. Managers at this level are responsible for the operation of the entire organization. They are the owners, chief executive officers, presidents, chief financial officers, vice presidents, and general managers.

There are only a few top managers because they are at the highest level of the business. These managers are the highest paid because they have the most authority and the most responsibility. As a result, they are usually the ones who are blamed if the business has a bad year and profits are down.

Managers at this level must have strong conceptual and decision-making skills because they are responsible for organizational goal setting. Top-level managers develop a vision of what the business should be and decide where the business is headed. After setting the organization’s goals, they must communicate those goals to everyone else. They also spend a good deal of time conducting strategic planning. They plan strategies to achieve the goals over a long period of time. Lastly, they monitor the business’s performance and may make decisions about whether to develop new products or expand into new markets.

For examples of top-level managers in action, read the Business Insider article “These Were the Best CEOs in 2019”. Links to an external site.

Mid-level (middle) management. This level of management is responsible for implementing the goals set by top management. Middle managers are the department heads, production managers, sales managers, and district managers.

Middle managers not only report to top managers, but also have lower level supervisors who report to them. Therefore, they are in the middle and are considered the link between top-level and first-line management. If top-level management decides to design a new product, then mid-level managers will plan how to do this. On the other hand, if first-line managers notice major problems, such as low morale among employees, they tell middle managers. The middle managers pass on the information to top managers.

Middle managers, who should possess a healthy dose of all three managerial skills, are especially active in the planning, organizing, and controlling functions of management. The planning that they do is more tactical in nature, meaning that they develop short-term plans to carry out within the next year in response to top management’s decisions. In other words, what actions should the business take on a short-term basis to achieve its goals? Let’s say that you are a middle manager for a business that wants to open a new location. You will plan how to find the best site, decide how to recruit qualified employees, and determine how to attract customers. You and the other middle managers are the ones who figure out how to make top management’s vision a reality.

The National Association of Colleges and Employers wrote an article on skills needed to be an effective middle manager. Read it here. Links to an external site.

First-line (supervisory) management. First-line managers take the vision one step further and make it happen. They are the ones who are concerned with actually carrying out the actions and plans that the middle managers identified. They are the office manager, floor supervisor, shift supervisor, and team leader. They spend most of their time staffing, directing, and controlling and are generally responsible for the day-to-day activities of the employees who do the routine work of the business. They train these employees, assign work to these employees, evaluate employees’ job performance, and maintain respect and discipline among the employees. In addition, first-line managers often work side by side with these workers.

There are more managers at the first-line level than at either of the other two levels of management. Many times, competent employees who are performing well on the job are promoted to supervisory positions. A lot of businesses have a policy of promoting from within whenever possible. They often reward good employees by making them supervisors. The idea is that employees who do the work well have a better understanding of what needs to be done on a daily basis. They have the technical skills required to help others do their jobs effectively.