The 3 Different Levels of Management- Explanation, and Example

The 3 different levels of management and their working attribute define the success of a business. All management level has their responsibilities and working areas.

By understanding their whole structure and members, you will know how a company works. Let us go into the detail of all levels to understand their responsibilities and work.

What are the 3 Different Levels of Management?

If a company is very large, it is not possible for few persons to control everything. This is why different workers are assigned duties, and the whole system is divided into different levels.

Following are the 3 different levels of management that exist in every company.

1. Administrative Management

It is also known as managerial and the top level of management as it consists of all board of directors and chief executive. All outright and management of the company is in the administrative management members.

As they have the highest rank in the company according to their skills and post. Thus all crucial decisions are made by them, and company success depends on them.

Due to their to position, they have to think about the future of the whole company that’s why are a forward thinker and always discuss different opportunities and ideas and try their best to plan a better future for all workers and company.

It is their responsibility to formulate new policies for the betterment and progress of the company. Similarly, whenever something terrible happens to the company, it is the responsibility of administrative management.

They have to arrange an emergency meeting to assess all situations, formulate new plans to face that situation, and devise new policies or modify an existing one.

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Moreover, all schedule and budget planning are done by them, and members of low management act on their instructions.

Similarly, when any manager of the department level is not good or has left the job, it is their responsibility to look at his performance and interview a new candidate for that post.

Most importantly, as they are the mains of any company, they have to attend all business meetings with national and international companies.

Furthermore, top-level management is answerable to shareholders for the performance of the business. That’s why they must have good decision making qualities as their one wrong decision will affect all shareholders

In short, the primary working infrastructure of the company, budget, scheduling is formulated by them. Thus, they are responsible for all members of top-level management to work with full attention and focus.

Because overall company performance depends on the policies, budget, and relationship with companies, if they will be a bit weak in making the right decision, all companies will have to go through the worst time.

Example

Suppose a company is going to introduce a hair serum. The budget, poles, and strategies for launching it and analysis of the environment to guess whether we should launch serum or not is the responsibility of top management.

2. The Executive level of Management

This level of management is also known as the middle level of management, and it is their responsibility to execute all the policies and strategies in their respective department.

In large companies, the middle level is further divided into two sublevels, upper and lower; however, it has only one level in small companies.

They are answerable to the top-level management about the working of their organizations. Similarly, they also have to design creative plans to control different sub-unit of departments working under them.

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Similarly, whenever new members in the lower management are hiring, they take interviews and train them according to company rules, regulations, and etiquette.

Furthermore, firstly, they understand all policies devised by administrative management then try their best to teach and explain procedures to the members of lower management.

If the lower management does not understand the policies, the company will never be successful as most of their work is done by them. So, arrange meetings and seminars to explain all strategies.

Now the execution of policies starts, middle management starts tracking the working of lower managers, prepares a report, and presents it to the top management so actions can be taken if required.

If managers are not working well and you are not getting expected results, train your lower managers and develop an interest in them. They work with complete devotion and enthusiasm.

Example

The company has decided they will introduce serum, so its making, main marketing target are all explained to the lower management as it is in direct contact with workers

The middle level does this all. Similarly, they will deliver a report of different departments to the administrative management.

3. Supervisory Level of Management

It is also known as a lower level of management and supervisory management. It has direct relations with all the workers and consists of forepersons, supervisors, and section officers.

It is their responsibility to coordinate with all workers daily and keep an eye on all day working. Similarly, they are responsible for total product and quality.

Similarly, if one worker is absent or a new one is hired, lower management must explain the job to him and assign him the task.

Similarly, if your company collaborates with lower organizations, supervisors are responsible for maintaining good relations with them and attending meetings.

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If any worker is worried or feels difficulty adjusting to your company’s environment, lower management should listen to his problem and devise a solution for helping him.

Similarly, if there is any dispute between workers, due to which the company’s environment is not peaceful, lower management should take instant actions and resolve the issue.

However, suppose the issue is still not resolved. Workers are still facing problems; lower management acts as a bridge between workers and higher management and discusses their issues to formulate a better solution.

Along with the daily report, they have to prepare a periodic report of all sections that is sent to the higher management to review it and update something if needed.

Similarly, if any work is going to leave or wants leave, lower management approves his application and makes arrangements to assign his tasks to someone else.

Similarly, they try to present a beautiful image of the business in front of the workers, which significantly affects its overall reputation. I hope you understand the 3 different levels of management.

Example

Once lower management understands all policies and strategies, they will assign daily tasks to the worker and give them a working direction. Similarly, they will keep an eye on quality and quality.

Moreover, they will prepare workers’ working reports and send them to the middle management. So if the company is not getting its expected result, they can analyze what the main problem is.

Final Words

In a nutshell, 3 different levels of management have their working areas. The top-level is responsible for the company’s performance to the shareholders, and the middle level of control gives all reports to the top level.

Lower levels deal with workers and act as a bridge between them and higher management. All strategies must be explained well to lower-level management.

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