Levels of management


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Levels of management

  1. 1. Levels of Management by Prof. N. N. Panda GIACR Engg. College, Rayagada
  2. 2. 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 work force increases and vice versa. The level of management determines a chain of command, the amount of authority & status enjoyed by any managerial position.
  3. 3. The levels of management can be classified in three broad categories: 1. Top level / Administrative level 2. Middle level / Executor 3. Low level / Supervisory / Operative / First-line managers
  4. 4. Top Level of Management It consists of board of directors, chief executive or managing director. The top management is the ultimate source of authority and it manages goals and policies for an enterprise. It devotes more time on planning and coordinating functions. The role of the top management can be summarized as follows – 1. Top management lays down the objectives and broad policies of the enterprise. 2. It issues necessary instructions for preparation of department budgets, procedures, schedules etc. 3. It prepares strategic plans & policies for the enterprise.
  5. 5. 4. It appoints the executive for middle level i.e. departmental managers. 5. It controls & coordinates the activities of all the departments. 6. It is also responsible for maintaining a contact with the outside world. 7. It provides guidance and direction. 8. The top management is also responsible towards the shareholders for the performance of the enterprise.
  6. 6. Middle Level of Management The branch managers and departmental managers constitute middle level. They are responsible to the top management for the functioning of their department. They devote more time to organizational and directional functions. In small organization, there is only one layer of middle level of management but in big enterprises, there may be senior and junior middle level management.
  7. 7. 1. They execute the plans of the organization in accordance with the policies and directives of the top management. 2. They make plans for the sub-units of the organization. 3. They participate in employment & training of lower level management. 4. They interpret and explain policies from top level management to lower level. 5. They are responsible for coordinating the activities within the division or department.
  8. 8. 6. It also sends important reports and other important data to top level management. 7. They evaluate performance of junior managers. 8. They are also responsible for inspiring lower level managers towards better performance
  9. 9. Lower Level of Management Lower level is also known as supervisory / operative level of management. It consists of supervisors, foreman, section officers, superintendent etc. In other words, they are concerned with direction and controlling function of management. Their activities include – 1. Assigning of jobs and tasks to various workers. 2. They guide and instruct workers for day to day activities. 3. They are responsible for the quality as well as quantity of production.
  10. 10. 4. They are also entrusted with the responsibility of maintaining good relation in the organization. 5. They communicate workers problems, suggestions, and recommendatory appeals etc to the higher level and higher level goals and objectives to the workers. 6. They help to solve the grievances of the workers. 7. They supervise & guide the sub-ordinates. 8. They are responsible for providing training to the workers. 9. They arrange necessary materials, machines, tools etc for getting the things done. 10. They prepare periodical reports about the performance of the workers. 11. They ensure discipline in the enterprise.
  11. 11. Managerial Skills Management is a challenging job. It requires certain skills to accomplish such a challenge. Thus, essential skills which every manager needs for doing a better management are called as Managerial Skills. The following are the basic managerial skills required – 1. Conceptual Skills 2. Human Relation Skills 3. Technical Skills
  12. 12. Conceptual Skills Conceptual skill is the ability to visualize the organisation as a whole. It includes Analytical, Creative and Initiative skills. It helps the manager to identify the causes of the problems and not the symptoms. It helps him to solve the problems for the benefit of the entire organisation. It helps the manager to fix goals for the whole organisation and to plan for every situation. According to Prof. Katz, conceptual skills are mostly required by the top-level management because they spend more time in planning, organizing and problem solving.
  13. 13. Human Relations Skills Human relations skills are also called Interpersonal skills. It is an ability to work with people. It helps the managers to understand, communicate and work with others. It also helps the managers to lead, motivate and develop team spirit. Human relations skills are required by all managers at all levels of management. This is so, since all managers have to interact and work with people.
  14. 14. Technical Skills A technical skill is the ability to perform the given job. Technical skills help the managers to use different machines and tools. It also helps them to use various procedures and techniques. The low-level managers require more technical skills. This is because they are in charge of the actual operations.
  15. 15. The below picture or diagram shows the managerial skills which are required by managers working at different levels of management. The top-level managers require more conceptual skills and less technical skills. The lower-level managers require more technical skills and fewer conceptual skills. Human relations skills are required equally by all three levels of management.
  16. 16. The other skills required are 1. Communication Skills 2. Administrative Skills 3. Leadership Skills 4. Problem Solving Skills 5. Decision Making Skills
  17. 17. Good Managers are born, not Made Some attributes of successful managers are as follows: Physical – good personality, sound health, clear voice, etc. Vocational – technical skill and knowledge, leadership qualities, etc. Mental – patience, sharp memory, etc. Some of these attributes may be inborn in a manager, while others he may have to acquire in order to be successful in his work. However, a person to become a successful manager requires something more than only these attributes and these additional qualifications can be added or improved only through training and management development programmes.
  18. 18. All the well educated and trained persons cannot become successful managers, because they may be lacking in some of the inborn essential qualities of a successful manager. Therefore, a combination of these attributes only can make good managers. However, the present day qualifications of a manager are far more than matters of natural endowment. Most managers are developed; few are ‘born managers’. Knowledge and skill in management is necessary. A manager solely depending on his subordinates cannot be effective. He himself must possess technical and vocational knowledge of the organization. Hence, there is a great need for the definite programme of training designed especially for the executive development.