Business Owner's Blog

  • services
  • blog
  • resources
  • contact
  • about
    • ← Book Review – Mastering the Rockefeller Habits by Verne Harnish
    • Why Business News is Irrelevant →

    3 Levels of Management

    14 Apr 2006 by John Seiffer in Blog, Management

    Work is defined as moving objects at or near the surface of the earth, or telling others to do so. The first is uncomfortable and ill paid, the second is more enjoyable and better paid. – Old Joke (which isn’t as funny in the new economy).

    Management is actually the job of coordinating effort so that an organization can perform better as a group than the individuals can working on their own.

    If you think about that sentence, you’ll discover that the point of management is performance, in other words the goal is results. And you’ll see that the tools at management’s disposal are the tools of coordination: prioritization, allocating resources, communication, support. You’ll also see that a lot hinges on your definition of the word “better.”

    Briefly, the three levels of management are these:

    Foreman
    This is the name usually used in factories or construction work – but it applies everywhere. It’s a person in charge of a small crew who is also a worker on that crew. It addition to doing the work, the foreman is responsible for leadership and intra-crew decisions such as scheduling, making sure the crew has enough supplies, etc. But the foreman cannot change the direction or makeup of the crew nor can he/she make major decisions about the crew’s assignments. The foreman is usually given a task for the crew to perform – he helps organize the crew to accomplish the task, but can’t modify the task.

    Executive or Middle Management
    These managers are responsible for organizing others to accomplish tasks. They are usually given (or help define) goals and they decide / prioritize the tasks needed to accomplish those goals. Then they work to assign ways that the tasks can be accomplished within constraints of budget, staffing levels, equipment etc. Middle management is often responsible for coordination between groups. In practice many managers (especially in technical fields) divide their time between actually doing management work and being workers or foremen (doing other work that needs to be done).

    Upper Management
    This level is responsible for setting strategic direction, and also is concerned with how to best utilize funds, new product decisions, how to read and address trends in the market place. Profitability goals and long term vs short term trade offs are the purview of this level of management, as are exit strategy decisions.

    Foreman or 1st level managers tend to ask When? What? and Where? because they are responsible for getting stuff done. Middle managers ask How? and Who? because they are given a goal and have to muster resources and assign them often within budgetary constraints. Top level mgmt asks WHY? because they are responsible for the strategic purpose of what is being done.

    Takeaways:

    • In small companies people wear many different hats. The same person may wear hats at each level of management. This can be confusing.
    • Too often, the owner is mostly doing foreman level work. Middle or Executive management is only done in response to a problem or crisis and Upper level strategic work done almost never. This is a mistake
    • The tools of the executive (middle and upper management) are meetings and reports. Many small business owners don’t know how to use these tools or believe they are not needed because of the small number, or close proximity of employees. They are wrong.
    • Tweet

    About the Author: John Seiffer

    13 Comments

    • lara

      this was really helpful!!!!!
      thanks guys!

      28 Aug 2006 06:08 pm
      Reply
      • christian aboah

        simple, tacit and straight to the point. THanks very much!!!

        13 Sep 2006 04:09 am
        Reply
        • melujj

          thank you. it was helpful for me.

          03 Dec 2006 05:12 pm
          Reply
          • MITCH

            THANKS A LOT!!!!!

            13 Dec 2006 11:12 pm
            Reply
            • Max

              Was very helpfull

              29 Dec 2006 08:12 am
              Reply
              • Jacob

                Thanks, this short and to the point article is extremely helpfull and actualy helped me understand and organize my company better.

                29 Dec 2006 08:12 am
                Reply
                • Lata

                  This article was short and very helpful for me to understand briefly about the levels of management.

                  02 Jan 2007 06:01 am
                  Reply
                  • Laban

                    It was very much vital to me.Thanks abundantly.

                    08 May 2007 05:05 am
                    Reply
                    • sugah

                      thanks a lot it was very helpful

                      05 Jun 2007 04:06 am
                      Reply
                      • roy

                        thanks for all the function of 3 levels of mangement…

                        22 Jun 2007 01:06 am
                        Reply
                        • manali

                          Thanks a lot for short and precise matter

                          11 Jul 2007 07:07 am
                          Reply
                          • Anonymous

                            perfect for my homework!

                            12 Jul 2007 03:07 am
                            Reply
                            • Myiralobari

                              This was short, but exceptionally loaded. I appreciate you guys dearly.Keep it up.Cheers.

                              26 Sep 2007 10:09 am
                              Reply

                              You must be logged in to post a comment.

                              • Recent Posts

                                • Starting the New Year with Zeros and Ones
                                • Think Backwards for Better Sales
                              • Categories

                                • Attitudes
                                • Blog
                                • Book Reviews
                                • Business Ideas
                                • Business Models
                                • CEO Skills
                                • Customer Relationships
                                • Finance & Accounting
                                • Hiring
                                • Humor
                                • Investing and Raising Cash
                                • Management
                                • Personal
                                • Politics
                                • Productivity
                                • Recomendations
                                • Sales & Marketing
                                • Software
                                • Strategy
                                • Taxes
                                • Training
                                • Trends
                                • Uncategorized
                              • Archives

                                • January 2012
                                • December 2011
                                • October 2011
                                • September 2011
                                • August 2011
                                • July 2011
                                • May 2011
                                • April 2011
                                • March 2011
                                • January 2011
                                • November 2010
                                • October 2010
                                • September 2010
                                • August 2010
                                • July 2010
                                • June 2010
                                • April 2009
                                • March 2009
                                • January 2009
                                • December 2008
                                • November 2008
                                • October 2008
                                • September 2008
                                • August 2008
                                • July 2008
                                • June 2008
                                • May 2008
                                • April 2008
                                • March 2008
                                • February 2008
                                • December 2007
                                • November 2007
                                • October 2007
                                • September 2007
                                • August 2007
                                • July 2007
                                • June 2007
                                • May 2007
                                • April 2007
                                • March 2007
                                • February 2007
                                • January 2007
                                • December 2006
                                • November 2006
                                • October 2006
                                • September 2006
                                • August 2006
                                • July 2006
                                • June 2006
                                • May 2006
                                • April 2006
                                • March 2006
                                • February 2006
                            • Social Links

                            • © 2006-2010 John Seiffer,
                              Business Advisor
                              418 Anderson Av. Milford CT 06460
                              203-775-6676
                            • RSS feed

                              Subscribe to this site's RSS feed.

                              Desktop Reader Bloglines Google Live Netvibes Newsgator Yahoo! What's This?

                            Copyright 2011 Better CEO All rights reserved