What is management hierarchy?

Management hierarchy is a workplace leadership structure where authority is given according to ranks, and employees take direction from their superiors. This structure can vary depending on the business and company.

Common management hierarchies include entry-level employees at the bottom, managerial employees in the middle, and executive roles at the very top. Management hierarchy can also be broken in terms of pay, responsibility, role, and power.

Most management hierarchies can be broken down even further into three different levels of management. These include:

• Top-level Management

Top-level management roles are those that oversee and manage the direction of an entire company or business. These managers' main objective is to increase growth and profits. They also employ strategies that ensure their company gets or remains in good standing regarding its reputation.

Top-level managers have the most authority in a company and are also accountable for a company's successes and failures. Other responsibilities include creating business plans, setting company goals, and establishing contact with other external businesses.

Top-level management positions can vary from company to company, but common positions include:

• Chief executive officer (CEO)

• Chief operating officer (COO)

• Chief financial officer (CFO)

• President

• Vice president

• Board of directors

• Mid-level Management

Mid-level managers are sometimes referred to as executory managers because they execute the plans of top-level managers. They also direct first-line managers and other employees. They work in somewhat of a liaison capacity by being the link between top-level management and everyone else in a company.

Oftentimes mid-level managers will be in charge of a specific department or division. Within these, they direct teams of employees in achieving specific company goals and also ensure company policies are being followed.

Many mid-level managers also evaluate employee performance and make records that are then viewed by top-level management or other relevant professionals.

Some common mid-level manager positions include:

• General manager

• Branch manager

• Department manager

• Regional manager

• Plant manager

• Division manager

• First-line Management

First-line managers often also listen to employee ideas, grievances, or concerns and then discuss them with mid-level management.

Most first-line management roles involve working directly with employees by helping them understand company objectives.

Here are some common roles in first-line management:

• Supervisor

• Section lead

• Team lead

• Foreperson

• Floor manager

• Area coordinator