Common Levels of Management in
Organizations

Common Levels of Management in Organizations

Published: Oct 24, 2023

By AMA Staff

The Essential Guide to Levels of Management in Organizations

What are the Levels of Management?

It is commonly accepted that there are three management levels, generically described as top, middle, and lower management. While there are no universally accepted designations for these three levels, they are often described as senior management, middle management and frontline management. In this hierarchy, each name of management level consists of terminology relevant to the degree of experience, responsibility, skills, and expertise required in the execution of specific job duties and goals. An understanding of each level is therefore essential for all organizations so that the most qualified people may fill the relative demands of each role.

Top-Level Management: The Strategic Decision-Makers

TOP-LEVEL (SENIOR) MANAGEMENT—This management level includes C-suite personnel (chief executive officer, chief operating officer, chief financial officer, department heads, board of directors, managing director, etc.) who are responsible for seeing that the organization survives and thrives. They must have a dual focus on the internal activities of the business, as well as influences beyond the organization, such as competition, new and emerging technologies, economic disruptions, and any other factors that may impact the company’s success and stability.

The senior manager has a direct influence on specific company policies, setting of goals and objectives, strategic planning, budgeting, and other high-level considerations that directly affect projects and initiatives, as well as employee responsibilities and accountabilities.

Individuals who hold positions in senior management play critical, high-level roles in executing the plans of the business, and as such, regularly interact with any shareholders or external stakeholders such as board members, parent organizations, etc., and communicate and adjust strategy in accordance with their degree of influence and ownership in the organization and its activities.