The term “Levels of Management” refers to a line of demarcation between various managerial positions in an organization. The number of levels in management increases when the size of the business and workforce increases, and vice versa.
The level of management determines a chain of command, the amount of authority, and the status enjoyed by any managerial position.
The levels of management can be classified into three broad categories:
- Top Level / Administrative Level
- Middle Level / Executory Level
- Low Level / Supervisory / Operative / First-line Managers
Managers at all these levels perform different functions. The role of managers at all the three levels is discussed below.
LEVELS OF MANAGEMENT
Top Level of Management
It consists of the board of directors, chief executive, or managing director. The top management is the ultimate source of authority and it manages goals and policies for the enterprise. It devotes more time to planning and coordinating functions.
The role of top management can be summarized as follows:
- Top management lays down the objectives and broad policies of the enterprise.
- It issues necessary instructions for preparation of departmental budgets, procedures, schedules, etc.
- It prepares strategic plans and policies for the enterprise.
- It appoints the executives for middle level, i.e., departmental managers.
- It controls and coordinates the activities of all the departments.
- It is also responsible for maintaining contact with the outside world.
- It provides guidance and direction.
- The top management is also responsible towards the shareholders for the performance of the enterprise.
Middle Level of Management
The branch managers and departmental managers constitute the middle level of management. They are responsible to the top management for the functioning of their departments. They devote more time to organizational and directional functions.
In small organizations, there is only one layer of middle-level management, but in big enterprises, there may be senior and junior middle-level management.
Their role can be emphasized as follows:
- They execute the plans of the organization in accordance with the policies and directives of the top management.
- They make plans for the sub-units of the organization.
- They participate in employment and training of lower-level management.
- They interpret and explain policies from top-level management to lower-level management.
- They are responsible for coordinating the activities within the division or department.
- They send important reports and other important data to top-level management.
- They evaluate the performance of junior managers.
- They are also responsible for inspiring lower-level managers towards better performance.
Lower Level of Management
The lower level is also known as the supervisory / operative level of management. It consists of supervisors, foremen, section officers, superintendents, etc.
According to R. C. Davis,
“Supervisory management refers to those executives whose work has to be largely with personal oversight and direction of operative employees.”
In other words, they are concerned with the direction and controlling functions of management.
Their activities include:
- Assigning jobs and tasks to various workers.
- Guiding and instructing workers in day-to-day activities.
- Being responsible for the quality as well as quantity of production.
- Maintaining good relations in the organization.
- Communicating workers’ problems, suggestions, and recommendatory appeals to higher-level management, and higher-level goals and objectives to workers.
- Helping to solve workers’ grievances.
- Supervising and guiding subordinates.
- Providing training to workers.
- Arranging necessary materials, machines, tools, etc., for getting the work done.
- Preparing periodical reports about the performance of workers.
- Ensuring discipline in the enterprise.
- Motivating workers.
- Acting as image builders of the enterprise because they are in direct contact with workers.