This is the management level responsible for the organisation's strategic and long-term goals. They are called C-suite managers, and they set the space that every member of the organisation follows.
Definition and Explanations
Top-level management is defined as individuals holding senior management roles in an organisation who are responsible for the company’s overall strategy, set directions, and plan for its long-term future.
Managers in an entity with titles such as chairman, executive directors, vice president, chief executive officer, chief marketing officer, chief finance officer, among other names are top-level managers.
Senior managers are responsible for the overall strategy of the business. They decide on the methods required to achieve the entity's mission and goals. Should the company divest? How can the product be unique from competitors?
They set the direction in which all staff members must follow. For example, top-level managers want to achieve zero complaints on the entity's products and services. They will preach this to the middle-level manager. These reach the front-line management and other employees in the entity. Therefore, all members will follow the directions.
Also, it is the responsibility of the top-level management to make a broad plan for the future. This plan is then converted into annual plans known as a budget. Then, they monitor if the broad plan is achieved through control.
To ensure the smooth running of the senior management team, they set up a board policy. This guides how the top management team perform their activities, including their meetings and agenda.
Are there top-level managers in small companies
It is difficult to separate senior managers and middle-level management in small and startup companies. For example, the CEO in a small company may give direction directly to line managers. Therefore, he/she might be handling both roles.
According to Dr Bamgboye, small businesses that are registered as limited liability companies should have an advisory board. This should include experts from different fields who serve as mentors to the management team of the small company.
Traditional functions and top-level management
Top-level management performs the traditional management functions of planning, organising, directing, and controlling. Senior managers put in much effort and time in planning, organising, and controlling. This is where they are able to set goals and objectives, decide on the strategy to achieve the goal, and set a direction for others to follow.
For controlling, the top-level manager must ensure that their plans are achieved. So, they will put in the necessary effort and time to ensure the resources put into use meet or exceed planned activities.
Therefore, they spend more time and effort on planning, organising, and controlling functions than other levels of management. In directing, the board of directors put in little effort. The reason is that they focus more on directing and leading the middle management team which is usually small in number compared to line managers and other staff members.
However, analysts believe that artificial intelligence will reduce the number of Graduate Trainees (GT) employed by companies. This will reduce the number of staff line managers directed. Therefore shifting the level of effort spent on leading to middle and top level managers.