Lesson 1: Managerial Organization

Managerial Hierarchy

To function effectively, businesses need formal chains of command.


Someone is in charge of specific responsibilities. Employees need to know what work they are required to do and from whom they take direction. They also need to report work progress and development needs to specific individuals.

Managerial hierarchy refers to the formal structured steps from the top-level manager to the front line supervisor. It provides clear communication lines and helps maintain order within the business.   

Click the pyramid section below to explore each level.





Managerial Hierarchy

  • Formal, structured steps from the top manager to the front-line supervisor provide clear communication lines.
  • Top level management (executives) establish general policies, make operating decisions, and formulate goals and actions.
  • Middle management is responsible for assigning work to front-line managers to ensure implementation of decisions from top managers.
  • Front-line supervisors ensure implementation of planning and operating decisions.


Click the following questions to see the answers.


  • formal, structured steps from the front-line supervisor to the top manager providing clear communication lines
  • Front-line supervisors
    • ensure implementation of planning and operating decisions

  • Middle management
    • assign work to front-line managers to ensure implementation of decisions from top managers

  • Top management
    • establish general policies, make operating decisions, and formulate goals and actions