Management Hierarchy

What Is Management Hierarchy – Meaning And Definition?

Management hierarchy is the ordered arrangement of roles in an organisation describing the chain of command and levels of authority. Traditionally, it is a pyramid, and the very top is that of the highest-ranking official, and below that are various levels of management. Each respective level typically supervises the level below it but reports upward to the level above, providing clarity concerning where decisions get made and who is accountable for what.

Levels of Management

Management hierarchy can be categorised into three major layers. These are the top-level, middle-level, and low-level management. Each of these levels plays an important role in the collective workforce management.

Top-Level Management

These include the CEO, CFO, and other senior-level leaders who are tasked with giving strategic directions in an organisation. They are generally responsible for high-level decision-making, defining company goals, and most importantly, orchestrating the overarching success relative to the organisation.

Middle-Level Management

They are middle managers who thus act as a bridge between top-level executives and lower-level employees. They enforce strategies set by top management and oversee departmental functions. Common roles within middle-level management include department heads, regional managers, and division managers. They motivate their respective teams to achieve certain objectives.

Lower-level management

This is also known as first-level management, and it comprises group leaders as well as supervisors. They directly manage the workers who are handling the core functions - day-to-day business operations and ensure that things get done effectively and that employees know their roles in the organisation and execute them correctly.

Why Do You Need a Management Hierarchy?

A well-defined hierarchy of management explains in detail the reporting relationships and reporting structures, which makes it easier for employees to understand to whom to go if they need help or a decision has to be made.

Accountability will be found within such a structure because every level has specific duties connected to achieving the ultimate success in the organisation.