LEVELS OF MANAGEMENT

As we have already learnt that management does not refer to a single individual but it refer to a group of persons. In companies large number of persons are employed and placed at different places to perform different managerial activities. To carry on these activities these employees are given necessary authority and responsibility. This grant of authority results in creation of chain of authority. This chain is divided into three levels which result in creation of three levels of management.

The main levels of management are:

    1    Top level management.

    2    Middle level management.

    3.  Supervisory level, operational or lower level management.

        Top Level Management

Top level management consists of Chairman, Board of Directors, Managing Director, General Manager, President, Vice President, Chief Executive Officer (C.E.O.), Chief Financial Officer (C.F.O.) and Chief Operating Officer etc. It includes group of crucial persons essential for leading and directing the efforts of other people. The managers working at his level have maximum authority.

Main functions of top level management are:

a)      Determining the objective of the enterprise. The top level managers formulate the main objectives of the organization. They form long term as well as short term objectives.

b)      Framing of plans and policies. The top level managers also frame the plans and policies to achieve the set objectives.

c)      Organizing activities to be performed by persons working at middle level. The top level management assign jobs to different individuals working at middle level.

d)      Assembling all the resources such as finance, fixed assets etc. The top level management all the finance required to carry on activities in the organization.

e)      Controlling the performance of employees. The top level management keeps a check on employees and their performance. They make sure that plans are implemented in the right direction.

f)        Liaison with outside world, for example, meeting Government officials etc. The top level management remain in contact with government, competitors, suppliers, media etc.

Middle Level Management

This level of management consists of departmental heads such as purchase department head, sales department head, finance manager, marketing manager, executive officers, plant superintendent etc. People of this group are responsible for executing the plans and policies made by top level. They act as a link between top and lower level management. They also exercise the functions of top level for their department as they make plans and policies for their department, organize and collect the resources etc.

Main functions of middle level management are:

a)  Interpretation of policies framed by top management to lower level. Middle level management act as a linking pin between top level and lower level management. They only explain the main plans and policies framed by top level management to lower level

.

b)   Organizing the activities of their department for executing the plans and policies. Generally middle level managers are head of some department. So they organise  all the resources and activities of their department.

c)  Finding out or recruiting/selecting and appointing the required employees for their department. The middle level management select and appoint employees of their department.

d)   Motivating the persons to perform to their best ability. The middle level managers offer various incentives to employees so that they can get motivated and perform to their best ability.

Supervisory Level /Operational Level

      This level consists of supervisors, superintendent, foreman, sub-department executives, clerk etc. Managers of this group actually carry on the work to perform the activities according to the plans of top and middle level management. Their authority is limited. The quality and quantity of output depends upon the efficiency of this level of managers. They pass on the instruction to workers and report to the middle level management. They are also responsible for maintaining discipline among the workers.

      

      Functions of lower level management are:

a)      Representing the problems or grievances of workers before the middle level management. The supervisory level managers are directly linked with subordinates so they are the right persons to understand the problems and grievances of subordinates. They pass these problems to middle level management.

b)      Maintaining good working conditions and developing healthy relations between superior and subordinate. The supervisory managers provide good working conditions and crate supportive work environment which improve relations between supervisors and subordinates.

c)      Looking to safety of workers. Supervisory level managers provide safe and secure work environment for workers.

d)      Helping the middle level management in recruiting, selecting and appointing the workers. The supervisory level managers guide and help the middle level managers when they select and appoint employees.

e)      Communicating with workers and welcoming of their suggestions. The supervisory level managers encourage the workers to take initiative. They welcome their suggestions and reward them for good suggestions.

f)       They try to maintain precise standard quality and ensure steady flow of output. The supervisory level managers make sure that quality standards are maintain by the workers.

g)      They are responsible for boosting the morale of the workers and developing the team spirit in them. They motivate the employees and boost their morale.