Strategic Management: Formulation and Implementation

Levels Of Management

Most people think of three basic levels of management:top, middle, and first-line managers.

Top managers are responsible for the overall direction and operations of an organization. Particularly, they are responsible for setting organizational goals, defining strategies for achieving them, monitoring and implementing the external environment, decisions that affect entire organization. They have such titles as chief executive officer (CEO), president, chairman, division president, and executive vice-president. Managers in these positions are responsible for interacting with representatives of the external environment (e.g., important customers, financial institutions, and governmental figures) and establishing objectives, policies, and strategies.

Middle managers are responsible for business units and major departments. Examples of middle managers are department head, division head, and director of the research lab. The responsibilities of middle managers include translating executive orders into operation, implementing plans, and directly supervising lower-level managers. Middle managers typically have two or more management levels beneath them. They receive overall strategies and policies from top managers and the translate them into specific objective and programs for first-line managers.

First-line managers are directly responsible for the production of goods and services. Particularly, they are responsible for directing nonsupervisory employees. First-line managers are variously called office manager, section chief, line manager, supervisor.