U1.22 — Levels of Management Within a Business

Overview

Dotpoint 22: Levels of management within a business, including top, middle and frontline management

Most businesses are organised in a hierarchy (a chain of command) so decisions, communication, and responsibility are clear. This hierarchy is often shown using an organisational chart, which is a diagram that shows who reports to whom and how authority flows through the business.

In most organisations, management is grouped into three levels:

  • Top management
  • Middle management
  • Frontline management
Overview example of management levels
🏢 Top Management

Top management is responsible for setting the overall direction and long-term goals of the business.

Who they are: Senior leaders responsible for the overall direction of the business (e.g., CEO, Managing Director, Board of Directors, General Manager).

Main role: Set the big-picture goals and make the major strategic decisions.

Key responsibilities

  • Set the business vision, mission, and long-term objectives
  • Make major decisions (expansion, new markets, large investments, mergers)
  • Approve budgets and set performance targets (KPIs)
  • Manage overall risk and reputation
  • Shape business culture and values

Skills needed

  • Strategic thinking and long-term planning
  • Strong decision-making under uncertainty
  • Leadership and communication (internal + external stakeholders)
  • Financial literacy (profitability, cash flow, investment decisions)
Top management leader
📊 Middle Management

Middle management connects top management strategy with day-to-day operations.

Who they are: Managers who turn top management strategy into workable plans (e.g., department managers, regional managers, operations managers, marketing managers, HR managers).

Main role: Translate strategy into actions, coordinate teams, and keep performance on track.

Key responsibilities

  • Create department plans and short/medium-term goals
  • Allocate resources (staffing, time, budgets)
  • Monitor KPIs (sales targets, customer satisfaction, efficiency)
  • Train and support frontline managers/staff
  • Solve operational problems and report results upward
  • Communicate changes (new systems, new policies, new promotions)

Skills needed

  • Planning and organising
  • Leadership and coaching
  • Problem-solving and data analysis
  • Communication (upward to executives + downward to teams)
Middle management in action
👥 Frontline Management

Frontline management supervises employees who carry out the daily tasks of the business.

Who they are: Supervisors/team leaders who manage staff doing the daily work (e.g., shift supervisors, team leaders, store supervisors).

Main role: Run day-to-day operations and make sure work is completed to the right standard.

Key responsibilities

  • Supervise daily tasks and workflow
  • Rosters, breaks, and shift coverage
  • Quality control (service standards, safety, procedures)
  • Handle customer issues and minor complaints
  • Motivate staff and maintain team performance
  • Provide feedback to middle management (what’s working/not working)

Skills needed

  • Clear communication and people skills
  • Time management and decision-making under pressure
  • Conflict resolution
  • Attention to detail (quality, safety, customer service)
Frontline managers supervising daily operations
🔗 How the Three Levels Work Together

A business runs smoothly when each level supports the others:

  • Top management decides what the business is trying to achieve.
  • Middle management decides how the business will achieve it.
  • Frontline management ensures it happens every day.

If one level breaks down (e.g., poor communication), the business can become inefficient: staff get confused, customers get inconsistent service, and targets are missed.

Management levels example
📍 Examples: Rebel Sport and Qantas

Example 1: Rebel Sport (retail store – Perth context)

In a Rebel Sport store (such as a large shopping-centre location), the three management levels are easy to see because the business runs on targets, rosters, stock availability and customer service standards.

  • Top management: Head office sets national strategy like pricing, brand campaigns, product ranges, and sales targets for states and regions.
  • Middle management: Store and department managers turn those targets into weekly plans (staffing levels, layout/merchandising decisions, local promotions, and stock priorities).
  • Frontline management: Shift supervisors/team leaders run daily operations (rosters, customer service, managing queues, ensuring staff follow procedures, and keeping the store presentation consistent).

This shows how top-level strategy becomes real through middle-level planning and frontline execution — especially during busy periods like weekend trade or sale events.

Rebel Sport store

Example 2: Qantas (large national organisation)

Qantas is a much larger and more complex business, so the management hierarchy is essential to coordinate thousands of staff and deliver safe, reliable operations.

  • Top management: The CEO and executive team set long-term strategy (network growth, fleet decisions, major partnerships, customer experience strategy, and profitability goals).
  • Middle management: Operational managers and department heads translate strategy into plans (flight scheduling, staffing requirements, training standards, service procedures, maintenance planning and budget control).
  • Frontline management: Supervisors in airports and operational teams manage the day-to-day delivery (check-in and boarding processes, turnaround times, staff coordination, and handling disruptions like delays or cancellations).

This example shows why middle and frontline managers are critical: even with a strong strategy, performance depends on consistent daily execution and clear communication across teams.

Qantas CEO, Vanessa Hudson
Qantas CEO, Vanessa Hudson

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