Management Levels & Structure

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The internal structure of the business often contributes to its success or demise of . Most businesses consist of a basic management structure, mainly top, middle and bottom level management. In each level, different decisions are made based on the type of management present. Each level of management communicates with each other and is interdependent.

  • Top Level Management

It consists of strategic management. Top level management is responsible for making important strategic decisions based on information collected by middle level management.

  • Middle Level Management

It implements the plans and decisions made by top level management. The decisions made at middle level can be defined as tactical and planned.

  • Bottom Level Management

It makes short term decisions on a day to day basis. These decisions are not planned and are based on the operations of the business. Different businesses operate under different management styles based on the type of business they are. Some businesses may be more democratic than others and employees reach their objectives through team work.

Other businesses are more formal and are managed under an autocratic management style. The organisational design of the business will be dictated based on the environment it is situated in. Mechanistic organisational designs are implemented in businesses that experience high levels of certainty and have relatively formal communication channels. These businesses often resist change and are operated under an autocratic leadership style.

Businesses located in an environment that is constantly changing will often consist of an organic organisational design. Businesses such as these are democratic and less formal than a business with a mechanistic organisational design. The way in which a business is managed also depends on the form of ownership of the business. It is important that the manager is aware of the legalities that are connected to the business and its form of ownership. The organisational structure of the business will determine the overall success of the business and how it is managed.