Types of Management Level

Types of Management Level

There are basically three types of management

1.       Top Management

2.       Middle Management

3.       Lower Management

1. Top Management

Top management is responsible to determine the overall direction of the organization. The top management normally makes long term decision which is ranging from 1 to 10 year. The top management makes the decision about new Market, Launch of new Product, Acquisition of Business, Equity Structure, Dividend payment.

2. Middle Management

 Middle management makes short term decision which is normally form within range of one year. The management makes decision which is mainly related to achieve the overall objective set by the top management. The decision normally includes the resource allocation, Performance target and control procedures, Budgets. The middle management basically provides support to top management by achieving medium term targets.

3. Lower Managment

 Lower tier of management is normally responsible to control day to day operation of the organization. These decisions are mostly related to control and lower management is not directly involved in making planning of the organization. The lower management is responsible of his area of responsibility and it is the responsibility to control the performance and efficiency of that area.

Relationship between different Level of Management

The management though have different domain but ultimate objective remains the same which is setup by the top management. It is therefore important that each level of management must achieve the target and direction set by the top management. If any management level is not performing it means that organization is not on track. For example if middle management cannot set appropriate target or provide the required resource then it will have negative impact on the performance area of lower management. Therefore all management level are closely linked and decision making of one area is greatly influenced by the overall direction.