Performance Management

Managerial Levels (B)

What are the main managerial levels? What is vertical division based on?

Posted: Nov 2011

Managerial positions within the organization are identified through organizational structure of managerial positioning. Organizational structure of the company is designing business units. The assigned managers are responsible for specific business unit.

Based on criteria of organizational managerial level there are three main levels: First Line Managers, Middle Level Managers and Top Managers

First Line Managers

First Line Managers are managers on the first organizational level. First line managers are organizing and supervising the work of operatives at the organization's base. Example of first line managers are supervisor on the shop floor in retailing organizations or supervisors in production lines.

Middle Level Managers

Middle Level Managers are representing the range of managers between base line managers and top managers. The layout and number of levels of this range varies depending of the size and organizational structure of the company. The middle level managers are responsible for operation of departments, units or business process, depending on the organization structure.

Top Managers

Top Managers are positioned at the top of organizational hierarchy. Top managers are responsible for success of the whole organization. Contrary to the middle level managers, the top managers are responsible for cross-functional alignment and performance of department and overall performance of the whole organization. From the perspective of organization, top managers are considered the key resource.

Vertical division of managerial layers is based on business area. Therefore, the managers are grouped into areas of business activity: production managers, financial managers, marketing managers, etc.