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Text 4 Levels of Management

Text 1 Capital | Text 3 Types of Securities | Text 5 Leverage | UNIT V THE SECURITIES MARKET AND REGULATION | Don`t make a costly mistake! | UNIT VI EVALUATING PERFOMANCE OF THE FIRM | Ex. 3 Make sure you remember the following words. Pay attention to the sentences with these words to see how to use them correctly. | Text 2 Accounting | Text 3 Financial Statements | Match them with their equivalents underlined in the text. Write down synonymous expressions in your notebook. |


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Managers can be differentiated according to their level in the organization. Although large organizations typically have a number of levels of management, the most common view considers three basic levels: top, middle and first-line managers.

Top managers. Top managers make up relatively small group of executives who control the organization. Titles found in this group include president, vice president, and chief executive officer (CEO).

Top managers establish the organization’s goals, overall strategy, and operating policies. They also officially represent the organization to the external environment by meeting with government officials, executives of other organization, and so forth. The job of a top manager is likely to be complex and varied. Top managers make decisions about such activities as acquiring other companies, investing in research and development (R&D), entering or abandoning various markets, and building new points and office facilities. They often work long hours and spend much of their time in meetings and on the telephone.

Middle managers. Middle management is probably the largest group of managers in most organizations. Common middle-management titles include plant manager, operations manager, and division head. Thus, the general manager of a Ford assembly plant in Detroit is a middle manager.

Middle managers are primarily responsible for implementing the policies and plans developed by top management and for supervising and coordinating the activities of lower-level managers. Plant managers, for example, handle inventory management, quality control, equipment failures, and minor union problems. They also coordinate the work of supervisors within the plant. In recent years, many organizations have thinned the ranks of middle managers since 1982, and Du Pont has made cuts of 15 percent. Still, middle managers are necessary to bridge the upper and lower levels of organization and to implement the strategies developed at the top. They can also be a significant source of information and productivity when given the autonomy to make decisions affecting their operating units.

First-line managers. First-line managers supervise and coordinate the activities of operating employees. Common titles for first-line managers are foreman, supervisor, and office manager. These are often the first positions held by employees who enter management from the ranks of operating personnel. In contrast to top and middle managers, first line managers typically spend a large proportion of their time supervising the work of subordinates.

Assignments to text 5:

1. Read the headline. What areas of management do you know?

2. Read the text and say what functional areas of management are described.

3. Are these areas typical for all kinds of companies?

4. What is the most important area of management to your mind? Does your answer depend on a company’s profile?


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