Three Levels of Business Management

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There are three levels of management: top-level, middle-level, and first-level. These three main levels of managers form a hierarchy, in which they are ranked in order of importanceMiddle managers’ main duty is to implement company strategy in the most efficient way. Their duties include creating an effective working environment, administrating the work process, making sure it is compliant with organization’s requirements, leading people and reporting to the highest level of management.

The Middle level Management is also referred to as the executor level, they are subordinates of the top-level management and are responsible for the organization and direction of the low-level management. They account for the top-level management for the activities of their departments.The middle-level managers are semi- executives and are made up of the departmental managers and branch manager. They could be divided into senior and junior middle-level management if the organization is big. They coordinate the responsibilities of the sub-unit of the firm and access the efficiency of lower-level managers.The middle-level managers are in charge of the employment and training of the lower levels. They are also the communicators between the top level and the lower level as they transfer information, reports, and other data of the enterprise to the top-level. Apart from these, there are three primary functions of the middle-level management in the organization briefed below:

  • To carry out the plans of the organization according to policies and directives laid down by the top level management.
  • To organize the division or departmental activities.
  • To be an inspiration or create motivation for junior managers to improve their efficiency.

Marketing management fulfills a critical role in the value chain, as it analyses customers wants and needs and brings to the attention of customers through products and services that the business has to offer. It is responsible for the identification of customer needs and preferences, and then the development of a marketing strategy targeted at a specific target market. This includes activities such as market segmentation, targeting and positioning, a well as making a range of decisions concerning the product, price, promotion and distribution of the product. In addition, marketing management is also responsible for environmental scanning, market research, the analysis of consumer behaviour and supporting top management with strategic planning. All of the above require an intimate knowledge of constantly changing customer needs and preferences.Marketing activities include long-term strategic product or service planning, brand and distribution strategies, communications planning and execution and sales.

Communications activities include advertising, PR, social media and promotional efforts. Some businesses classify sales separately from marketing, giving sales activities their own budget category. As your company grows, you might create separate advertising, PR and promotions departments. Businesses with smaller staffs might find it more manageable to classify all of these activities under marketing.

The marketing manager manages the day to day marketing activities of the organisation aligned to long term strategic process developed by top management for the long-term plans, while the middle manager will develop the tactical and operational plans to accomplish these objectives with his team.We can analyse the business environment with the SWOT analysis to determine Strengths, Weakness, opportunities and threats in the organisation.Set goals to achieve desired results even outside of each financial year to determine measurement of success. Create a medium term plan referred to as Functional Planning to realize their objectives.

Example of functional strategy can be a marketing strategy on product positioning in the market.Create short term plans for operational planning should be met within a year and an example is sending staff training sessions.Further responsibilities as a Marketing Manager include:Managing all marketing for the company and activities within the marketing department.Developing the marketing strategy for the company in line with company objectives.Co-ordinating marketing campaigns with sales activities.Overseeing the company’s marketing budget.Creation and publication of all marketing material in line with marketing plans.Planning and implementing promotional campaigns.Manage and improve lead generation campaigns, measuring results.Overall responsibility for brand management and corporate identityPreparing online and print marketing campaigns.Monitor and report on effectiveness of marketing communications.Creating a wide range of different marketing materials.

Working closely with design agencies and assisting with new product launches.Maintain effective internal communications to ensure that all relevant company functions are kept informed of marketing objectives.Analysing potential strategic partner relationships for company marketing.

In line of providing guidance, inspiration and direction, good leaders should reflect courage, passion, confidence, commitment, and ambition. Should aim to nurture the strengths and talents of people and build teams committed to achieving these common goals. The most effective leaders have the following traits in common:As a leader with vision will have a clear idea of where we want to go, how to get there and what success looks like. To have an articulate vision clearly and passionately, ensuring the team understands how their individual efforts contribute to higher level goals.The best way to build credibility as a leader is gain the respect of others by setting the right examples. Demonstrate a behaviour that you want others to follow. By demanding a lot of the team, one should also be willing to set high standards for oneself.Demonstrate integrity and draw on values to guide decisions, behaviour, and dealings with others.

To have clear convictions about what is right and wrong and are respected for being genuine, principled, ethical and consistent. Keep promises, and communicate openly, honestly and directly with others. To communicate clearly, concisely and tactfully and will involve more than just listening to others and responding appropriately. It also includes sharing valuable information and being clear about what a leader will want. Communicate to inspire and energize the staff with clear goals and deadlines to the team.To make difficult decisions when facing tough choices and to be confident in the decision making in hopes to earn the respect of the team.Empower others and show recognition over the individuals work and believe that what they’re doing is meaningful to allow people to give their best. Challenge them with high expectations and encourage them to be creative and show innovation.Show responsibility and accountability were as a leader that is responsible for carrying out a task, and must account for the performance.

Every manager has their own leadership style no matter how they run their team, and as a leader at least one of these types of leadership power would be utilised.1. Legitimate powerLegitimate power is traditional power based on the leader’s formal position in the organisations hierarchy. – it is the type of power a leader in a company has due to the status of their position.

Information power

One gains information power when they know something other people want to know. This information could be anything from gossip to confidential knowledge about a person or company.Expert powerPeople who have more specialised knowledge or experience than other members of their team exhibit expert power. For example, an executive with 20 years of experience in their field has expert power over a recent college graduate who is just starting their career. Reward powerA leader who has the ability to give or withhold rewards such as salary, bonus, and recognition has reward power. The more important these rewards are to subordinates, the greater will be the reward power of the leader.

Coercive power

Coercive power is the opposite of reward power; a leader who can punish an employee or team member has coercive power. Because the threat of punishment can persuade an employee to act a certain way, this type of leadership power Qis usually less effective than reward power6. Referent powerReferent power is all about “who you know.” A leader with lots of referent power may have many connections or a large social network they can use to their advantage. This also refers to personal power. The followers are apt to like, admire, and want to emulate the leader Subordinates will follow the leader because they liked and respected him Similarly, charismatic leaders have the ability to influence others. While they may or may not have an established network of contacts, they usually have a natural ability to persuade or inspire others.


Better and more efficient use of resources.

Opportunity for training and development to increase skills knowledge and competency of employees leads to better workforce which ensures increase in efficiency

Record new methods of performing the tasks and standardization of operating techniques for increasing efficiency

Ensuring a fair selection in hiring employees which encourage employees to take part in decision making processv. Determining an acceptable level of performance and developing a remuneration system that ensures salary rewards to employees with higher productivity Disadvantages:i. It is based upon a one way approach and is applicable for simple business organisations than the more modern type for today’s dynamic and complex organisationii. It focuses on individual performance than group efforts and separates employees into efficient and inefficient categoriesiii.

It is focused on specialization and repetition of jobs to increase the productivity which reduces innovation and creativity and can become monotonousiv. Neglects human factor because it motivates employees to work for monetary benefits rather than human resource development and resourcesv. There is no scope for creativity of employees because they are developed by management which leads to frustration.


Cite this paper

Three Levels of Business Management. (2020, Sep 17). Retrieved from https://samploon.com/three-levels-of-business-management/



What are 3 main categories in the management process?
The three main categories in the management process are planning, organizing, and controlling. Planning involves setting goals and objectives, organizing involves arranging resources and delegating tasks, and controlling involves monitoring progress and making adjustments as needed.
What are the 3 levels of management in business?
The three levels of management are upper management, middle management, and lower management.
What are the levels of business?
The levels of business are sole proprietorship, partnership, and corporation.
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