Identify common titles for top managers, middle managers and lower-level managers

Levels of Management:

Top Managers A top manager is an upper-level executive who guides and controls the overall fortunes of the organization. Top managers constitute a small group. In terms of planning, they are generally responsible for interpreting the organization’s purpose and developing its mission. They also determine the firm’s strategy and define its major policies. It takes years of hard work and determination, as well as talent and no small share of good luck, to reach the ranks of top management in large companies. Common titles associated with top managers are president, vice president, chief executive officer (CEO), and chief operating officer (COO).

Middle Managers A middle manager is a manager who implements the strategy and major policies handed down from the top level of the organization. Middle managers develop tactical plans and standard operating procedures, and they coordinate and supervise the activities of lower-level managers. Titles at the middle-management level include division manager, department head, plant manager, and operations manager.

Lower-Level Managers A lower-level manager is a manager who coordinates and supervises the activities of operating employees. Lower-level managers spend most of their time working with and motivating employees, answering questions, and solving day-to-day problems. Most lower-level managers are former operating employees who, owing to their hard work and potential, were promoted into management. Many of today’s middle and top managers began their careers on this lowest management level. Common titles for lower-level managers include office manager, supervisor, and foreman.

Areas of Management:

The most common areas of management are: finance, operations, marketing, human resources, and administration.

Financial Managers A financial manager is a manager whose primary responsibility is the organization’s financial resources. Accounting and investment are specialized areas within financial management. Because financing affects the operation of the entire firm, many of the presidents of this country’s largest companies are people who got their “basic training” as financial managers.

Operations Managers An operations manager is a manager who creates and manages the systems that convert resources into goods and services. Traditionally, operations management has been equated with manufacturing – the production of goods. However, in recent years many of the techniques and procedures of operations management have been applied to the production of services and to a variety of nonbusiness activities. Like financial management, operations management has produced a good percentage of today’s company presidents.

Marketing Managers A marketing manager is a manager responsible for facilitating the exchange of products between the organization and its customers or clients. Specific areas within marketing are marketing research, advertising, promotion, sales and distribution.

Human Resources Managers A human resources manager is a person charged with managing the organization’s formal human resources programs. He or she engages in human resources planning; designs systems for hiring, training, and appraising the performance of employees; and ensures that the organization follows government regulations concerning employment practices. Because human resources management is a relatively new area of specialization in many organizations, there are not many top managers with this kind of background. However, this situation should change with the passage of time.

Administrative managers An administrative manager (also called a general manager) is a manager who is not associated with any specific functional area but who provides overall administrative guidance and leadership. A hospital administrator is a good example of an administrative manager. He or she does not specialize in operations, finance, marketing or personnel management but instead coordinates the activities of specialized managers in all these areas. In many respects, many top managers are really administrative managers.

I. COMPREHENSION

A) Review Questions

1. How are the two perspectives on kinds of managers – that is, level and area – different from each other?

2. Compare the three kinds of managers: top, middle, and lower-level managers.

3. What are the liabilities of other kinds of managers according to the areas of management?