There are different levels of managers, and the importance of the skills and functions needed to perform the job varies by level. We will also discuss some of the differences between business sizes and managing for-profit companies and not-for-profit organizations. Managers differ in the level of management, and there are also nonpermanent managers called team leaders, as well as nonmanager operative employees. There are also different types of managers by level of management.

The three levels of management are top managers, middle managers, and first-line managers. Job titles are given to help identify the level of management. The three levels relate to each other as described here. Most organizations have relatively few top management positions. Top managers are responsible for managing an entire organization or major parts of it. They develop and define the organization’s purpose, objectives, and strategies.

First-line managers are responsible for implementing middle managers’ operational plans. Unlike those at the other two levels of management, first-line managers do not supervise other managers; they supervise employees. Team leaders are often called a project or program leader or task force or committee leader. The team leader facilitates team activities to achieve a goal rather than telling people what to do.

Nonmanagement operative employees may also be team leaders who manage a team until the goal is completed. The team leader is not usually a permanent management position and thus is not a level in the hierarchy of management. Operative employees are workers who do not hold management positions. They commonly report to first-line managers and possibly to team leaders. They make the products, wait on customers, perform repairs, and so on.