Managerial Hierarchy | Levels of Manager | Types of Managers

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Managerial Hierarchy | Levels of Manager | Types of Managers


Managerial Hierarchy (Levels of Manager) | Types of Managers


Managerial Hierarchy (Levels of Manager)
The term “Levels of Manager’ refers to a line of demarcation between various managerial positions in an organization. The number of levels in manager increases when the size of the business and workforce increases and vice versa. The level of manager determines a chain of command, the amount of authority & status enjoyed by any managerial position. The levels of manager can be classified into three broad categories: –
Managers at all these levels perform different functions. The role of managers at all three levels is discussed below:

1. Top Level of Manager

It consists of the board of directors, chief executive, or managing director. The top manager is the ultimate source of authority and manages goals and policies for an enterprise. It devotes more time to planning and coordinating functions.

The role of the top manager can be summarized as follows —

  • The top manager lays down the objectives and broad policies of the enterprise.
  • It issues necessary instructions for the preparation of department budgets, procedures, schedules, etc.
  • 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.
  • It is also responsible for maintaining contact with the outside world.
  • It provides guidance and direction.
  • The top manager is also responsible to the shareholders for the performance of the enterprise.

2. Middle Level of Manager

The branch managers and departmental managers constitute the middle level. They are responsible to the top manager for the functioning of their department. They devote more time to organizational and directional functions. In a small organization, there is only one layer of the middle-level manager but in big enterprises, there may be a senior and junior middle-level manager. Their role can be emphasized as:
  • They execute the plans of the organization in accordance with the policies and directives of the top manager.
  • They make plans for the sub-units of the organization.
  • They participate in the employment & training of lower-level managers.
  • They interpret and explain policies from top-level managers to lower levels.
  • They are responsible for coordinating the activities within the division or department.
  • It also sends important reports and other important data to top-level managers.
  • They evaluate the performance of junior managers.
  • They are also responsible for inspiring lower-level managers towards better performance.

3. Lower Level of Manager

The lower level is also known as the supervisory/operative level of the manager. It consists of supervisors, foremen, section officers, superintendent, etc. According to R.C Davis, “Supervisory management refers to those executives whose work has to be large with personal oversight and direction of operative employees”. In other words, they are concerned with the direction and controlling the function of the manager. Their activities include:
  • Assigning jobs and tasks to various workers.
  • They guide and instruct workers for day-to-day activities.
  • They are responsible for the quality as well as quantity of production.
  • They are also entrusted with the responsibility of maintaining good relations in the organization.
  • They help to solve the grievances of the workers.
  • They supervise & guide the subordinates.
  • They are responsible for providing training to the workers.
  • They arrange necessary materials, machines, tools, etc. for getting the things done.
  • They prepare periodical reports about the performance of the workers.
  • They ensure discipline in the enterprise.
  • They motivate workers.
  • They are the image builders of the enterprise because they are in direct contact with the workers.

Types of Managers

There are three types of managers. They are;

1. Staff Manager:

They have expertise in their specialized area of knowledge. They provide advice to functional and generalist managers. They counsel and support them. They are not a part of a chain of command. They do not have decision-making authority.

For example Legal advisers, advisors of the prime ministers is staff managers.

2. Functional Managers:

Functional managers are specialized in particular such as Production, Marketing, Human Resource, Finance are located in department, working on distinct tasks. authority to make decisions. The duties, responsibilities of functional managers are specified in the job description. manager posting is based on technical qualifications. 


For example, Civil Service Officers up to the rank of are functional managers.

3. Generalist Managers:

Generalist managers direct jobs in a variety of functions. Organizations keep them rotating from function to function. Job specified only for the entry-level position, They also have to authority to make decisions.

For example, the Joint secretary and secretary are generalists managers.

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