Levels of Management
Prof. N. N. Panda
GIACR Engg. College, Rayagada
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.
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
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
The role of the top management can be summarized as
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.
4. It appoints the executive for middle level i.e.
5. It controls & coordinates the activities of all
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.
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.
1. They execute the plans of the organization in
accordance with the policies and directives of the
2. They make plans for the sub-units of the
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.
6. It also sends important reports and other
important data to top level management.
7. They evaluate performance of junior
8. They are also responsible for inspiring lower
level managers towards better performance
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
1. Assigning of jobs and tasks to various workers.
2. They guide and instruct workers for day to day
3. They are responsible for the quality as well as
quantity of production.
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
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.
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
The following are the basic managerial skills
1. Conceptual Skills
2. Human Relation Skills
3. Technical 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.
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.
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
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.
The other skills required are
1. Communication Skills
2. Administrative Skills
3. Leadership Skills
4. Problem Solving Skills
5. Decision Making Skills
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
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.
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
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.