MANAGERIAL HIERARCHY : TYPES OF MANAGERS

Managerial hierarchy means dividing the authority and responsibility among the various managerial positions. Although all managers perform the same functions of planning, organizing, leading and controlling, there are hierarchies among them. Clearly there are many types of managers in an organization. Thus, it is useful to categorize managers as to their managerial level and then distinguish between functional and general managers.


Managerial Levels

It is the normal practice to place managers in a three-tier hierarchy as described below:

(1) Top Managers

Top managers consist of Board of Directors, Chairman, President, Vice-president, Managing Director or Chief Executive Officer (CEO) or General Manager. They make up the relatively small group of executives who manage the overall organization. They have the overall responsibility for the welfare and survival of the organization. They establish overall organizational goals and strategies for their achievement. Top management is the ultimate source of the authority. The important functions of top management includes:

a. Determine the goals of an organization.
b. Make policies and frame plans to attain the goals.
c. Set up an organizational structure to conduct the operations as per plan.
d. Assemble the resources of money, men, materials ans machines for executing the plans.
e. Provide overall directions in the organization.
f. Exercise effective control of the operations.


(2) Middle Managers

Middle managers consist of departmental, divisional and sectional heads attached to the different departments and sections. They are subordinates to the top managers and responsible for the first-line-managers. They usually have the responsibility for implementing and controlling plans and strategies as developed by the top management. They are also responsible for all the activities of first-line-managers. New information technology and recent efforts at restructuring or 'downsizing' organizations have reduced the numbers of middle managers. The main functions of middle management are as follows:

a. Interpret the policies framed by the top management.
b. Recruit and select suitable operative and supervisory staff.
c. Develop and train employees in the organization for better functioning.
d. Assign duties and responsibilities for timely implementation of the plans.
e. Issue instructions to the supervisory staff.
f. Motivate personnel to attain higher productivity and to reward them properly.
g. Cooperate with other departments for ensuring a smooth functioning of the entire organization.
h. Report and to make suitable recommendations to the top management for the better execution of plans and policies.


(3) First-Line-Managers

First-line-managers consists of foremen, supervisors, office managers, coordinators, sales officers, account officers,etc. First line managers are responsible for the implementation and control of the operational plans developed by middle managers. They supervise and coordinate the activities of operating employees. Actual operations are the responsibility of this level of management. In contrast to top and middle managers, first line managers typically spend a large proportion of their time supervising subordinates. The main functions of first-line-management are as follows:

a. Issue orders and instruction to the operatives (workers) and to supervise and control their work.
b. Classify and assign jobs to the workers.
c. Direct and guide the workers about work procedure.
d. Arrange the necessary tools, equipments, materials,etc. for the workers.
e. Look after the proper maintenance of tools, machinery, etc.
f. Solve the problems of workers.
g. Inform the unsolved problems of workers to the management.
h. Maintain good human relations and discipline among the workers.
i. Build a high group morale among the workers.


Functional and General Managers

Another way of classifying managers is to separate the functional managers from general managers. Organizations are often described as a set of functions. A function is a collection of similar activities. Functional managers are responsible for only one functional area. The major functions of managers are marketing, finance, operations, human resources and other areas.

(1) Marketing Managers : Marketing managers work in areas related to the marketing function such as new product developments, promotion, distribution, and sales. They must focus on satisfying the needs of customers and therefore, must be knowledgeable as to the needs of customers and nature of competitive goods and services.

(2) Financial Managers : Financial managers deal with an organization's financial resources. They are responsible for activities such as accounting , cash management, investments , stocks, debts, and taxes.

(3) Operations Managers : Operations managers are concerned with creating and managing the systems than create an organization's products and services. They are responsible for production control, inventory control, quality control, plant layout and site section.

(4) Human Resources Managers : They are responsible for hiring and developing employees for the organization. Hence, they are involved in human resource planning, recruiting, selecting, training and developing employees, designing compensation and reward system and discharging employees based on the human resource needs of the organization.

(5) Other Mangers : Many organizations have specialized management positions in additions to those already described. Public relations managers for example deal with the public and media. Firms in high-technology may employ a 'Research and Development manager to manage the firm's technology development. The number and nature of these specialized managers vary tremendously from one organization to another. As contemporary organizations continue to growing complexity and size, the number and importance of such managers are also likely to increase.

General managers are also known as administrative managers. General managers are not associated with any particular management specialty. They are generally generalists who are not responsible for one of the above organizational functions. They have some basic familiarity with all functional areas of management. General managers usually oversee a complex unit such as a company, branch or an independent operating department. They are responsible for all the activities of that unit, branch or department. Company presidents are general managers if employees from different disciplines report to them.