Top-Level ManagementTop-level managers determine broad strategic strokes for the organization in general, and focus on the big picture. Show
Learning Objectives Understand the responsibilities and characteristics of top-level management Key TakeawaysKey Points
Key Terms
Some views on management revolve around vertical differentiation, or creating an hierarchical view of managers. This is useful to visualize in a chart, where top management is logically at the top, overseeing the entire organization. Middle managers are in the middle, acting as a bridge between upper management and certain work groups. Lower managers are task or process oriented, managing functional specialists and projects. The Pros and Cons of Vertical Thinking The primary advantage of this perspective is that different management professionals can view the organization from different angles. Top-level managers tend to focus mostly on strategy and bigger picture thinking, while middle managers focus on aligning a large work group towards shared objectives. Frontline
management thrives in pursuing operational efficiency, hiring on entry and mid-level talent, and assessing performance. FedEx Organizational Structure: This is an organizational structure example that cleanly demonstrates a vertical delegation of managerial responsibilities. The higher the level of management, the broader their scope. This means that lower level managers have a high degree of detail-orientation. Top-level ManagementCore Characteristics High level managers tend to have a substantial amount of experience, ideally across a wide variety of functions. Many high-level
managers become part of an executive team by mastering their functional disciplines across various roles, becoming the Chief Operations Officer (COO), Chief Marketing Officer (CMO), Chief Technology Officer (CIO or CTO), Chief Financial Officer (CFO) or Chief Executive Officer (CEO). Responsibilities The primary role of the executive team, or the top-level managers, is to look at the organization as a whole and derive broad strategic plans. Company policies, substantial financial investments, strategic alliances, discussions with the board, stakeholder management, and other top-level managerial tasks are often high-risk high return decision-making initiatives
in nature. Top-level management roles are therefore often high stress and high influence roles within the organization. Middle-Level ManagementMiddle management is the intermediate management level accountable to top management and responsible for leading lower level managers. Learning Objectives Recognize the specific responsibilities and job functions often assigned to middle-level management professionals Key TakeawaysKey Points
Key Terms
Defining Middle Management Most organizations have three management levels: first-level, middle-level, and top-level managers. These managers are classified according to a hierarchy of authority and perform different tasks. In many organizations, the number of managers in each level gives the organization a pyramid structure. Four-tier pyramid: Workers, middle managers, senior managers, and executives: This figure illustrates the hierarchy of management within an IT department. Note that middle management is tasked with (1) their tier of technical skills, i.e. information management systems, as well as (2) communication of system efficacy upward to senior managers and (3) delegating tasks downward to workers. Middle-Management RolesMiddle-level managers can include general managers, branch managers, and department managers. They are accountable to the top-level management for their department's function, and they devote more time to organizational and directional functions than upper management. A middle manager's role may emphasize:
Middle managers may also communicate upward by offering suggestions and feedback to top managers. Because middle managers are more involved in the day-to-day workings of a company, they can provide valuable information to top managers that will help them improve the organization's performance using a broader, more strategic view. Middle-Management FunctionsMiddle managers' roles may include several tasks depending on their department. Some of their functions are as follows:
Because middle managers work with both top-level managers and first-level managers, middle managers tend to have excellent interpersonal skills relating to communication, motivation, and mentoring. Leadership skills are also important in delegating tasks to first-level managers. Frontline ManagementFrontline management balances functional expertise with strong interpersonal skills to optimize specific operational processes.
Learning Objectives Recognize the core competencies and common responsibilities of frontline management Key TakeawaysKey Points
One perspective that can be taken on management is a hierarchical view. Under this perspective, managers are responsible for different degrees of organizational scope, which can be visualized as having responsibility over a larger volume of processes and people. When illustrating this concept, the lower level managers are at the bottom of the chart (often shaped something like a pyramid) while the executives are at the top. USCG Organization Chart: This is a simple example of an organizational chart, in this case for the U.S. Coast Guard. This is a particularly good example of hierarchical thinking, as the military functions with a high degree of hierarchical authority. Why Differentiate Management When looking at different levels of management from a vertical frame, the value of separating management this way essentially allows different amounts of scope. The expression 'seeing the forest for the trees' is a particularly useful anecdote for the purpose of the upper
managerial teams. Front Line ManagementAt the front line, managers are often highly skilled and even functional specialists. A front line manager is best positioned when they focus on controlling and directing specific employees (think in terms of supervisors, team leaders, line managers, and project managers). Skill Sets A front line manager needs to have two distinctive skill sets: the interpersonal skills to manage people as well as the technical expertise to be among the front lines actively
executing functional tasks. As a result, frontline managers are often highly valuable team members with the versatility to contribute in various ways.
Responsibilities Responsibilities of a frontline manager will therefore come in two flavors. The first is the expertise required to do whatever it is they are managing. If we are talking about an accounting manager, they must be able to balance the books and understand enough of everyone's specific function to fill the gaps. If it is a frontline manager on an automobile manufacturing facility, the manager should be aware of how to run most of the
machines and how to assess the productivity of different positions (ideally from experience). Functional vs. General ManagementGeneral managers focus on the entire business, while functional managers specialize in a particular unit or department. Learning Objectives Differentiate between functional management and general management from a business perspective Key TakeawaysKey Points
Key Terms
Functional management and general management represent two differing responsibility sets with an organization. Functional managers are most common in larger organizations with many moving parts, where different business functions are led by managers within those respective fields (i.e. marketing, finance, etc.). General management is more common in smaller, more versatile, environments where the general manager can actively engage in every facet of the business Functional ManagementBesides the heads of a firm's product and/or geographic units, the company's top management team typically consists of several functional heads (such as the chief financial officer, the chief operating officer, and the chief strategy officer). A functional manager is a person who has management authority over an organizational unit—such as a department—within a business, company, or other organization. Functional managers have ongoing responsibilities and are not usually directly affiliated with project teams, other than ensuring that goals and objectives are aligned with the organization's overall strategy and vision. Functional vs. general management: This chart shows a particular organizational hierarchy employing both general and functional management. Each functional manager is in control of a particular area of expertise—e.g., operations or policy and planning—and the general manager supervises all the functional managers. General Management General management focuses on the entire business as a whole. General management duties and responsibilities include formulating policies, managing daily operations, and planning the use of materials and human resources. However, general managers are too diverse and broad in scope to be classified
in any one functional area of management or administration such as personnel, purchasing, or administrative services. Management in Different Types of Business: For-Profit, Non-Profit, and Mutual-BenefitManagers must adjust their management style to fit the type of organization. Learning Objectives Apply managerial styles within different business types and to accomplish different objectives Key TakeawaysKey Points
Key Terms
Management style is influenced by the goals and purpose of the organization, which are in large part established by the type of business being managed. Management in For-Profit OrganizationsA for-profit business is an organization engaged in the trade of goods, services, or both to customers with the goal of earning profit to increase the wealth of the business's owners. Managers have to direct their efforts towards achieving that goal. Management in Non-Profit Organizations In contrast, a non-profit organization is legally prohibited from making a profit for owners. All income generated by a non-profit's activities must be used to achieve the charitable or educational purpose defined in the organization's bylaws. The managers of non-profits must always be aware of that charitable purpose and ensure that the organization's operations conform to
those purposes. Management in Mutual-Benefit OrganizationsA mutual-benefit non-profit corporation can be non-profit or for profit. However, mutual benefit corporations are usually formed for nonprofit purposes like managing a condo association, a downtown business district, or a homeowners association. A mutual is therefore owned by its members and run for their benefit; it has no external shareholders to pay in the form of dividends, and as such does not usually seek to generate large profits or capital gains. Managers in mutual benefit organizations are, therefore, more concerned about improvements in human and environmental well-being than maximizing profits for external shareholders. Comparing Management in For-Profit, Non-Profit, and Mutual-Benefit OrganizationsThe management of all three types of organizations (for-profit, non-profit, and mutual-benefit) may have similar responsibilities, such as drafting a budget and ensuring that the organization generates enough revenue to fulfill its operational needs. Management will need to plan, organize, direct and control the business's activities. All three types require that management motivate employees. Management processes: Management styles vary among types of organizations, but they still follow the main steps of planning, organizing, directing, and controlling. However, the approach managers take will vary based on the type of organization. For example, a manager of a for-profit
company may be able to motivate employees through bonuses for sales targets or profit sharing. This strategy cannot work for a non-profit or mutual-benefit corporation. In those cases, management must either appeal to the employees' sense of duty to the mission of the non-profit or to the benefit they would receive from a well-run mutual-benefit corporation. While every organization poses different challenges, effective managers consider the type of organization and adjust their style to fit
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What level is middle management?Middle management is the intermediate management level of a hierarchical organization that is subordinate to the executive management and responsible for 'team leading' line managers and/or 'specialist' line managers.
What are the 4 levels of management?The four most common types of managers are top-level managers, middle managers, first-line managers, and team leaders. These roles vary not only in their day-to-day responsibilities, but also in their broader function in the organization and the types of employees they manage.
What are middle management positions?A middle manager is someone who is in a leadership position and also reports to top management. They manage their team's career progression, communicate decisions from upper management, and adjust workflows, processes, and priorities to align with overall business objectives.
Who are the top level managers?Top level management consists of Chairman, Board of Directors, Managing Director, General Manager, President, Vice President, Chief Executive Officer (C.E.O.), Chief Financial Officer (C.F.O.) and Chief Operating Officer etc.
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