B.Sc. CSIT 7th Semester Principle of Management

What is Managerial Hierarchy and it’s types?

Managerial hierarchy

The arrangement of managerial positions in an organization is referred to as managerial hierarchy. It was practiced to divide authority and responsibility into different levels. It is essential to carry out organizational tasks in a systematic manner. The most common managerial hierarchies used in various organizations are as follows:

Top level Management

It consists  of a board of directors, a CEO, and a managing director. Top management is the ultimate source of authority and is in charge of an organization’s goals and policies. It devotes more time to function planning and coordination. It performs higher level job such as executive coaching, change management, leadership, delegation, and empowerment. It prepares strategic plans & policies for the enterprise.It appoints the executive for middle level i.e. departmental managers.It controls & coordinates the activities of all the departments. 

Middle level management

 It consists of Plant Managers, Departmental Managers, Division Heads, and Functional Managers. Middle-level managers are primarily responsible for putting top-level managers’ policies and plans into action. They must follow top-level managers’ instructions and provide guidance to first-line managers or supervisors. These managers serve as a bridge between top-level and lower-level management.

Low level Management

It consists of Supervisors, Coordinator, Foremen, and Office Managers. Low-level managers are concerned with controlling and directing. They are in charge of supervising and coordinating the activities of employees or workers. This level serves as a conduit between workers and middle-level managers. Low-level managers typically spend a significant amount of time supervising the activities of employees/labors/workers.

Types of Manager

On the Basis of Level

Top Level Managers:

  • President, Chairperson, Chief Executive Officer (CEO), General Manager, Managing Director, etc.are  top level managers. 
  • They form organizational vision, mission, goals, strategies, and policies.

Middle Level Managers

  • Plant Manager, Operating Managers, Divisional Heads, Coordinators, etc. are middle level managers. 
  • Middle level managers deal with decision making within their area of responsibility and implementing policies, programs, and plans determined by the top level managers that will meet the strategic objectives of the organization. 

Lower Level Managers

  •  Supervisor, Coordinator, Foreman and Office Managers, etc.are lower level managers.
  •  They work under the direction of top and middle level managers and supervise the performances of employees. 

On the Basis of Area

Marketing Managers: 

  • Its primary responsibility is to manage a company’s marketing resources.
  • They can be in charge of a single product or brand, or they can be a general manager in charge of a diverse range of products and services.
  • Their primary functions are new product development, promotion, and distribution.

Financial Managers:

  • A financial manager is someone who is in charge of an organization’s financial health.
  • They prepare financial reports, direct investment operations, and devise strategies and plans for the organization’s long-term financial objectives.

Operations Managers: 

  • They entail supervising and being accountable for all actions within the company that contribute to the efficient production of goods and services.

 Human Resource Managers: 

  • Human Resource Manager refers to the person in charge of an organization’s human resources.
  • The functions of a human resource manager include human resource planning, recruitment, selection, placement, training and development, remuneration management, rewards and punishments, and so on.

Administrative Managers: 

  • An administrative manager is in charge of an organization’s administrative activities.
  • They guarantee that information flows well and that resources are used efficiently throughout a company.

Also Read: What are managerial skills and roles?

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Sarina Sindurakar