Operations Management Hierarchy

Operation management is that area of management that is associated with designing, overseeing and controlling the entire process of production of goods and services and redesigning business operations as well. The operation management managers need to ensure that the operations in relation to the business are efficient in the sense that few resources are being needed and also customer requirements are being met. They need to manage the process involved in transforming the input (as in raw materials, energy and labor) into outputs (as in goods and/or service).

operations management hierarchy

Operational management managers have a very important role to play in the companies that they work and there are managers are different levels and they are required to fulfill specific tasks as well. In most organizations, operation management hierarchy consists of three levels and each of them has been discussed in detail below.

First Level Managers

First level managers are also referred to as lower level managers and are at the bottom of the Operations management hierarchy. They work as the connecting link between the non-managerial employees and the manager level employees. In most organizations, they serve as the supervisor and are involved in the management of day-to-day operations of the business. They can also be retail managers. Their main functions include:

  • Human resource activities
  • Budgeting
  • Scheduling
  • Disciplinary measures
  • Issues orders to the non-managerial employees and supervise their work.
  • Assign and classify tasks to the employees.
  • Ensure that the tools and machineries are working fine.
  • Convey the problems face by the organization to senior managers etc.

Mid Level Managers

First level managers after few years of experience are promoted to mid level managers also referred to as middle managers. They work in liaison with both the lower level managers and the managers who work in the highest level with the Operations management hierarchy. In some of the organizations, middle managers are involved in daily day-to-day activities but in most cases, they have to depend on the first level managers for the required inputs. They can be regional managers but in most of the cases they serve as the general manager or the operational manager of the company. Some of their major duties include:

  • Interpret and implement the policies as decided by the top managers.
  • Issue instructions to the lower level managers
  • Train and encourage employees for a better productivity.
  • Ensure the smooth functioning of all the departments in the organization.

Upper Level Manager

These managers the top executives of any organization and their work depend on the input provided by the middle level manager and they need to take all the crucial decisions regarding the company’s future development. Chief financial managers, chief executive officers and all the other top leaders of the company are responsible for the vision of the company and in taking all the important decisions. They need to

  • Set the goals of the organization and make plans and policies to attain the same.
  • Offer overall directions in the organization.