Managerial hierarchy and level || The nature of management || Bcis Notes

Managerial hierarchy and level || The nature of management || Bcis Notes

Managerial Hierarchy and Level

The function of management is performed by persons called managers. The division of an organization into the different departments based on the nature of function and appointment of managers of different levels to maintain the unity of command is a managerial hierarchy. There are many types of managers in an organization. Thus, it is useful to categorize managers as to their managerial level and then distinguish between functional and general managers.

Managerial Levels

The first line manager report to the middle-level manager and lower-level manager report to the top management. It is the normal practice to place a manager in a three-tier hierarchy as described below:

1)Top managers

This is a higher level of management and is responsible for achieving the overall objectives of the organization. Top managers consist of the Board of Directors, Chairman, President, Vice-president, Managing Directors or Chief Executive Officers(CEO) or General Manager. They make up the relatively small group of an executive who manages the overall organization. They have overall responsibility for the survival of the organization. They established overall organization goals and strategies for their achievement. Top management is the ultimate source of authority. The important function of top management is the ultimate source of authority. The important function of top management includes:

a. Determine the goals of an organization.
b.Make policies and frame plans to attain the goals.
c.Set up an organizational structure to conduct the operations as per plan.
d.Provide overall direction in the organization.
e.Exercise effective control of the operations.

2)Middle Managers

This level consists of functional heads of different departments and is responsible for preparing and implementing the departmental plans. Middle managers consist of the departmental, divisional and sectional head attached to the different departments and sections. They are subordinate to the top managers and responsible for the first-line managers. Managerial hierarchy and its level ¬†Managers have formal authority to use organizational resources and to make decisions.¬†They usually have the responsibility for implementing and controlling plans and strategies as developed by the top management. They are also responsible for all the activities of first-line-managers. New information technology and recent effort at restructuring or ‘downsizing’ organizations have reduced the number of middle managers. The main function of middle management are as follows:

a. Interpret the policies framed by the top management.
b. Recruiter and select suitable operative and supervisory staff.
c.Issue instruction to the supervisory staff.
d.cooperative with another department for ensuring the smooth functioning of the entire organization.
e.To make provision of training, workshop, seminar, and other activities.


This is the lowest level and is directly involved in the implementation of plans. First-line-managers consists of foremen, Supervisor, office managers, coordinators, sale officers, account officers, etc. They supervise and coordinate are the responsibility of the level of management. Although first-level managers typically do not set goals for the organization, they have a very strong influence on the company. In contrast to the top and middle managers,first-line supervising subordinates. The main functions of first-line management are as follows:

a. Classify and assign jobs to the works.
b.Direct and guide the workers about the work procedure.
c.inform the unsolved problem of workers to the management.
d.Build high group morale among the workers.
e.To operate and create a better environment for work.

Managers at different levels of the organization engage in different amounts of time on the four managerial functions of planning, organizing, leading, and controlling.

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