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In this case, the head of the company is freed from the need to delve into all the details of ongoing processes and independently control each employee. With a properly built management pyramid, he is freed from operational tasks, having the opportunity to engage only in strategic planning.
As an example of a company that operates on the principle of a management pyramid, we can consider any large corporation - Apple, Google, Microsoft or Amazon. These companies successfully operate a clear management hierarchy, in which each level has its own list of tasks and responsibilities. In Russia, the pyramid of management levels in its pure form is most often found in educational organizations and other government structures.
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Characteristics of the main levels of management in the organization
The vertical division of labor implies the presence of several management levels in the management of an organization:
Institutional - top management level.
Managerial - middle management level.
Technical - lower management level.
At the highest level of management are several executives. For example, the board of directors, which consists of several experts in a particular industry. Also at this level are the president of the company, the vice president of the organization, and the entire board.
The group of employees ensures the interests and needs of the shareholders, negotiates with high-ranking officials to determine the main aspects of the company's activities, as well as to bring it to a qualitatively new level. A special company policy is being developed to facilitate its practical organization.
Middle managers ensure the process of step-by-step implementation of the company's operating policy. Top management develops this policy and defines its key requirements, but it is middle managers who implement all new ideas. This is due to the fact that they have the opportunity to study in detail the current state of the company, identify problem areas and determine ways to resolve them.
It is also important to collaborate with employees of the organization, to learn their opinions and to receive feedback. Middle managers have this opportunity, since they are numerically more numerous than top managers. Middle managers are responsible for ensuring that tasks are communicated to departments and divisions.
Characteristics of the main levels of management in the organization