Levels of Management

Managers work in organizations, but not everyone in an organization is a manager. For simplicity’s sake, we can divide organizational members into two categories: operatives or managers. Operatives are people who work directly on a job or task and have no responsibility for overseeing the work of others. In contrast, managers direct the activities of other people. Managers may also have some operative responsibilities; for example, an insurance claims supervisor may also be responsible for processing insurance claims in addition to overseeing the activities of the other customer officers in the claims department. However, our definition presumes that a manager has subordinates.

Three levels of management found in most organizations are:

Operational: managers are generally involved in the supervision of non-management personnel. They are essentially technical managers responsible for producing products or services.

Tactical: middle managers translate the goals of the organization into specific objectives and activities. They are responsible for the co-ordination of resources particularly at the departmental level. They direct and control the work of others.

Strategic: senior managers are responsible for the efficiency and effectiveness of the organization as a whole. They manage the interaction with the external environment. A long-term, future-oriented focus is required in order to set the most appropriate organizational mission and goals.