Principles & Practice of Management - Levels of Management

1. Principles & Practice of
Management
By:
Smt.UMA MINAJIGI REUR
HEAD, DEPT. OF COMMERCE & Management
Smt. V G Degree College for Women, Kalaburagi
Part 6
Levels of Management

2. Meaning of Management:
Management is the art of getting things done by a group
of people with the effective utilization of available
resources. There are various definitions given by various
management gurus but simply management is the process
consisting of the functions of planning, organizing,
staffing, directing and controlling the operations to
achieve specified objectives

3. Levels of Management
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 within an organization, as well as the amount of
authority & status enjoyed by any managerial position.

4. The 3 Different Levels of Management

5. Levels of Management
The levels of management can be classified in three broad
categories:
 Top level / Administrative level
 Middle level / Executory
 Low level / Supervisory / Operative / First-line manage

7. 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.

8. 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.
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.

9. 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.

10. Their role can be emphasized as –
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.
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.

11. Lower Level of Management
Lower level is also known as supervisory / operative level of
management. It consists of supervisors, foreman, section
officers, superintendent 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
direction and controlling function of management.

12. 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.
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.
12. They motivate workers.
13. They are the image builders of the enterprise because they are in direct contact with the
workers.

13. Levels of Management - Summary
An organization can have many different managers, across a
variety of titles, authority levels, and levels of the management
hierarchy that we illustrated above. In order to properly assign
roles and responsibilities to all managerial positions, it is
important to recognize the key differences between low-level,
middle-level, and top-level management.

14. The key takeaways from this distinction are as follows:
1. Top-level managers are responsible for controlling and
overseeing the entire organization.
2. Middle-level managers are responsible for executing
organizational plans which comply with the company’s
policies. They act as an intermediary between top-level and
low-level management.
3. Low-level managers focus on the execution of tasks and
deliverables, serving as role models for the employees they
supervise.

15. All businesses are comprised of a vast array of different
managerial tasks. When these are coordinated properly, and
there is a strong hierarchal manager system in place, an
organization can be extremely efficient in creating value through
the production of their products, services and overall workflow.

16. Examples

19. Thank you
Watch my next video for
Evolution of Management