Organizational management structures

Many businesses use organizational structures to define levels, roles and relationships in the workplace. Structures help optimize efficiency and communication by defining which of its members are accountable for certain decisions and responsibilities. They adapt according to the needs of the business or the strengths of its team. Smaller businesses may only have one management level, for example, while larger businesses may have several tiers of management.

Horizontal organizational structure

Horizontal organizational structures are flat management structures that are usually best for businesses with fewer employees. Management tends to work more closely with employees, and employees have greater autonomy in their work. This relaxed structure encourages more employee empowerment and collaboration, even if it has fewer or less-defined management levels.

Vertical organizational structure

Vertical organizational structures are vertical or top-down management structures. This structure usually has multiple levels of management, and each level has clearly defined leadership, roles and responsibilities. For businesses with greater and more complex demands, this structure helps provide clarity and hierarchy in decision-making. The highest level of management has the greatest authority for decision-making, for example, while the lowest level of management would usually gain approval from upper levels for important decisions.

Different types of managers

Regardless of the organizational structure, there are generally four types of managers in a business. This includes top-level managers, mid-level managers, first-line managers and team leaders. Each level of management is usually responsible for supervising those below them. Although the top executives may supervise levels directly related to them, they are technically responsible for all levels. In contrast, lower-level management may only be responsible for a few employees and report to a first-line manager for decision approval. Separating work in this way allows a business to create smoother communication and approval processes.

Top-level managers

Top-level managers are executives who help direct and oversee the entire business. They are responsible for its long-term management and success. Their roles usually involve complex decisions and tasks that trickle down and are delegated to other employees. Top-level managers are tasked with executive-level strategy and execution responsibilities and make decisions that affect the entire business, such as investments, brand changes or partnerships. As such, they must be experts in how the business functions and interacts with the economy, legislation, finance and consumers.

Common top-level management roles include:

• President
• Vice president
• Board of directors member
• Chief executive officer (CEO)
• Chief operating officer (COO)
• Chief financial officer (CFO)
• Chief marketing officer (CMO)
• Chief compliance officer (CCO)

Within top-level management, there may be an internal hierarchy, depending on the type of business. Other managers may report directly to the CEO or the board of directors, or they might work more collaboratively and report to the board of directors.

Middle managers

Middle managers are the link between first-line managers and top-level managers. Top-level managers usually delegate strategy and goals to middle managers. Middle managers use these strategic plans and guidelines to create specific operations plans, converting them into more defined tasks and goals for other employees and managers. Essentially, they are responsible for implementing top-level plans and guiding other managers and employees to meet these goals and objectives. Within that, middle managers are responsible for making sure that all managers and employees within their division are performing to a set standard. They are also responsible for evaluating and providing feedback for performance measurables.

Middle managers are usually assigned to a specific area of the business, such as a department or branch. Different types of managers at the middle level include:

• General manager
• Department manager or head
• Director
• Chief supervisor
• Division manager
• Regional manager

First-line managers

First-line managers are generally supervisory or entry-level managers who work closely with the business’s employees. They are delegated by upper management levels to smaller sections within a company. First-line managers receive instructions from middle and sometimes top-level management and work directly with a team of employees to meet whatever goals they’ve been assigned. In their day-to-day work, they are tasked with supervising, listening to and collaborating directly with employees. Should they have any concerns or questions or need approval for a decision, they report to middle managers, who then might escalate it to top-level management.

Different types of managers at the first-line level may include titles like:

• Supervisor
• Assistant manager
• Shift manager
• Office manager
• Section chief
• Floor manager
• Area coordinator

Team leaders

A team leader is a more fluid definition of a manager, but they usually report to first-line or middle managers. They may be assigned to a specific task, project or activity according to an objective defined by a first-line or middle manager. A team leader assigned to a project may be responsible for planning its timeline, delegating tasks to team members, communicating expectations and training to team members and monitoring the progress of the task. Their daily activities help support the progress of the project, so they often collaborate with team members or work on tasks related to the project.

A full-stack developer, for example, may not have an official management title but may be assigned a project and team of developers to help them accomplish various tasks. Once the project is completed, the team might be dissolved and the team leader assigned to another project or as a member of another team. Over time, a team leader might be prepared and trained to take on more of a first-line or middle managerial role.