The term “Levels of Management’ refers to a line of demarcation between various managerial positions in an organization. The number of levels in management increases when the size of the business and workforce increases and vice versa. The level of management determines a chain of command, the amount of authority and status enjoyed by any managerial position. Discuss the three (3) broad categories of management level and the implication for organizational success.

There are three broad categories in the levels of management:

Top-level / Administrative level: Includes the board of directors, chief executive or managing director, and is the main authority that sets the goals and policies, focusing on tasks related to make plans and coordinating their execution.

Middle level / Executory: Includes branch and departmental managers. Their tasks are related to organization and direction to execute the plans set by the top management.

Low level / Supervisory / Operative / First-line managers: Includes supervisors and superintendents who commit to organizing and directing operative employees.

Explanation:

As any business requires many different tasks in management and operation, establishing a clear and strong hierarchy of management is essential for organizational success.