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Fundamentals of Business Economics and Management · Introduction to Management

Levels of Management and Managerial Roles Explained

Updated 10 October 2026 · Fact-checked

Levels of management are the layers of managers in an organisation: top (strategy and policy), middle (implementation and coordination) and lower or supervisory (day-to-day work). Mintzberg grouped managerial roles into interpersonal, informational and decisional. Katz named three skills: technical, human and conceptual. Match each to its level or group to answer MCQs.

Understand Levels of Management and Managerial Roles

A managed organisation is not run by one person. Work is split across layers. The layer a manager sits in decides what the manager mostly does, how far ahead the manager looks and what skills matter most.

Top level management includes the Board of Directors, Chairman, CEO and Managing Director. They set objectives, frame policies and long-term strategy, and are accountable to owners or shareholders. They deal with the outside world: government, investors and competitors.

Middle level management includes department heads and divisional managers, such as a Production Manager or Sales Manager. They turn top-level plans into departmental plans, coordinate departments, and guide lower managers. They link the top and the bottom.

Lower level (supervisory or operational) management includes foremen, supervisors and section officers. They deal directly with workers, assign tasks, maintain quality and discipline, and report problems upward. Their plans are short-term.

Mintzberg's roles describe what managers actually do, in ten roles in three groups. Interpersonal: figurehead, leader, liaison. Informational: monitor, disseminator, spokesperson. Decisional: entrepreneur, disturbance handler, resource allocator, negotiator. Katz's skills: technical (knowing the work and tools), human (working with people) and conceptual (seeing the organisation as a whole). Top managers need the most conceptual skill, lower managers the most technical skill, and human skill is needed at all levels.

Key formulas to remember

Levels and main focus
Top = strategy and policy; Middle = implementation and coordination; Lower = supervision of operations
Most MCQs test which activity belongs to which level.
Mintzberg's interpersonal roles
Figurehead, Leader, Liaison
Arise from the manager's formal authority and status.
Mintzberg's informational roles
Monitor, Disseminator, Spokesperson
Concern receiving and passing on information.
Mintzberg's decisional roles
Entrepreneur, Disturbance handler, Resource allocator, Negotiator
Concern making choices. Four roles here; three in each of the other groups.
Katz's skills by level
Top: conceptual highest; Middle: human prominent; Lower: technical highest; Human skill: all levels
Conceptual falls and technical rises as you go down the levels.

How to solve Levels of Management and Managerial Roles questions

Use this method for any question on levels, roles or skills.

  1. 1Read the question and decide whether it asks about levels, Mintzberg's roles or Katz's skills.
  2. 2Underline the key action word, such as policy, coordinate, supervise, negotiate or inform.
  3. 3For levels, match the action to time horizon: long-term and strategic is top, departmental is middle, daily and operational is lower.
  4. 4For roles, decide the group: dealing with people (interpersonal), handling information (informational) or making choices (decisional).
  5. 5For skills, link technical to hands-on work, human to dealing with people, conceptual to the big picture.
  6. 6Eliminate options that belong to a different level or group, then pick the best fit.

Quickest way: Keyword matching

When to use it: Use for one-line MCQs where an activity or example is given and you must name the level, role or skill.

  1. Spot the keyword in the statement.
  2. Policy, objectives, strategy, Board, CEO: top level.
  3. Departmental plans, coordination, department head: middle level.
  4. Supervision, workers, daily tasks, foreman: lower level.
  5. Pass on information to staff: disseminator; speak to media: spokesperson; settle a dispute with a supplier: negotiator; handle a sudden crisis: disturbance handler.
  6. Pick the match and move on.

Common mistakes in Levels of Management and Managerial Roles

  • Calling department heads top level managers.

    The word 'manager' in a senior title feels like top management.

    Fix: Top level means Board, Chairman, CEO and MD. Department heads are middle level.

  • Confusing the three Mintzberg groups.

    Roles like leader and spokesperson sound similar.

    Fix: Learn the groups as 3-3-4 lists. Leader is interpersonal; spokesperson is informational.

  • Saying lower managers frame policies.

    They are close to daily decisions, so students assume they decide more.

    Fix: Lower managers carry out plans and supervise. Policy is a top level task.

  • Mixing up Katz's skills with levels.

    Students think each skill belongs to only one level.

    Fix: Human skill is needed at every level. Conceptual is most important at the top and technical at the lower level.

  • Treating disturbance handler and negotiator as the same role.

    Both involve solving problems.

    Fix: Disturbance handler reacts to unexpected crises. Negotiator bargains on behalf of the organisation.

Worked examples

Example 1

At Sunrise Textiles Ltd, the Board decides to enter the export market over the next five years. The Production Manager prepares a plan for the weaving department to meet this goal. A supervisor assigns looms to workers each shift. Identify the level of management for each action.

Show the solution
  1. The Board deciding a five-year expansion is a long-term strategic decision, so top level.
  2. The Production Manager converts the goal into a departmental plan, so middle level.
  3. The supervisor assigns daily work to workers, so lower level.

Answer: Board: top level; Production Manager: middle level; supervisor: lower level.

Example 2

The Managing Director of an Indian FMCG company meets a supplier's team and agrees a revised price and delivery schedule. Which Mintzberg role is being played, and to which group does it belong?

Show the solution
  1. The manager is bargaining with an outside party on behalf of the company.
  2. Bargaining to reach an agreement is the negotiator role.
  3. The negotiator role involves making choices about resources and terms, so it is decisional.

Answer: Negotiator role, in the decisional group.

Exam tips

  • Memorise the 3-3-4 split of Mintzberg's ten roles; questions often ask which role belongs to which group.
  • Expect statements like 'Which is a function of middle management?' Eliminate options about policy-making or direct supervision first.
  • For Katz's skills, remember the trend: conceptual decreases down the levels, technical increases, human stays important everywhere.
  • Read the example in the question carefully. A role is chosen by what the manager does, not by the manager's title.
  • There is no negative marking, so always attempt every question after eliminating options.

Practice questions from Introduction to Management

Levels of Management and Managerial Roles in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Levels of Management and Managerial Roles: frequently asked questions

What is the difference between top level and middle level management?

Top level management sets objectives, policies and long-term strategy and is accountable to owners. Middle level management converts these into departmental plans, coordinates departments and guides lower managers.

What are Mintzberg's three groups of managerial roles?

They are interpersonal, informational and decisional. Interpersonal has figurehead, leader and liaison. Informational has monitor, disseminator and spokesperson. Decisional has entrepreneur, disturbance handler, resource allocator and negotiator.

Which skill is most important for top management?

Conceptual skill is most important at the top, because top managers must see the organisation as a whole and plan its direction. Human skill is still needed at all levels.

Is a supervisor a manager?

Yes. A supervisor belongs to lower or operational level management. The supervisor directs workers' daily tasks and reports to middle managers.