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1. MODULE 1: Levels of
Management and
Managerial Functions
Dr. L.P.Padhy, Adjunct Professor
Biju Patnaik Institute of Information Technology and Management
Studies, Bhubaneswar

2. Chapter Outline
• Introduction
• Meaning of levels of Management
• Top Level Management
• Middle Level Management
• Lower level Management

3. INTRODUCTION
• Today, it is the time of big organization scale
production.
• In this age of large scale production and
throat cut competition, the ownership and
management of organization are separate.
• The business is managed by those who are
not its owners.
• In management set up of an organization, we
find different levels.
•

4. Introduction- Contd
• Levels of management refer to a line of
separation between different positions held by
different persons in an organization.
• In this context, managerial hierarchy is studied.
• Managerial hierarchy means the study of
different positions held by the employees and
officers of an organization.
• It is the structure which makes clear position of
all officers of the organization.

5. MEANING OF LEVELS OF MANAGEMENT
• The term ‘levels of management refers to a
line of separation between different
positions held by different persons in an
organization.
• Level of management depends upon the
nature, size and functions of an organization.
Levels of management also expand with the
expansion of organization.

6. • There is a limit to the number of
subordinates a person can supervise. Levels
of management are increased so as to
achieve effective supervision.
• The levels of management of an organization
may be broadly be divided in to three parts
namely, Top Management, Middle
Management and Lower Level or first line
management.

7. • In organizations which are small in size, scale and
scope, the owner manages all the activities and
needs no support from others. For example, a
small store or a small consultancy is handled by
the founder with minimal support.
• However, with the growth and increase in the size
of the organization, it becomes difficult for a
single individual to run the business.
• A need for a formal organization and the
establishment of formal authority structures
becomes a necessity.

8. • Management activities are categorized into three
levels Top, Middle and Lower Level.
• The three levels are organized along hierarchical
lines so that each level could be supervised by
the immediate level over and above it.
• The functions of each level depend on the size,
scale, technology, Culture prevailing in the
organization.
• Further, the number of managerial positions at
each level differ from organization to
organization.

9. LLEVEL & TYPES OF MANAGERS
Top Management
Middle Management
Lower Operations
management
Biju Patnaik Institute of Information Technology and
Management Studies, Bhubaneswar

10. TOP LEVEL MANAGEMENT
• Top level management is concerned with the
organization as a whole and has interaction with
the external environment. This interaction
mandates that the manager works with the
individuals and outside organization.
• They are appointed by the governing body of the
organization and are usually referred to as the
Chief Executive Officer, President, Chairman etc.
in large organizations.
• They are empowered to take decisions pertaining
to the organization.

11. • Besides the CEO, the board also appoints the
Senior Vice-President, Vice President, Executive
Director, all of whom form part of the top level
management and involve in taking decisions
which affect the entire organization.
• They work with the middle level managers in the
implementation of organizational strategy and
maintain overall control over organizational
performance.

12.  The role of top level management is to formulate
organizational strategy and controlling resources.
 They are also considered the strategy architects
and organizational leaders. In their leadership
role, they have to create and articulate a broader
corporate purpose in which people can identify
and to which people enthusiastically commit.

13. • Top level management of a company consists
of the board of directors and the chief
executive or the managing director.
• Top management is the ultimate source of
authority and it establishes goals and policies
for the enterprise.
• It devotes more time for planning and co-
ordination functions.

14. The role of top management
functions or activities
1. It lays down the objectives of the enterprise.
2. It prepares strategic plans and policies for the
enterprise.
3. It issues necessary instruction for the preparation
of departmental budgets, schedules, procedures,
etc.
4. It appoints the executives for the middle level.
5. It controls the activities of all departments with
the help of reports, memoranda etc.
6. It builds and maintains relations with the outside
public.

15. The middle level management
• This level is responsible for the implementation
of plans and strategy developed by the top
managers for the accomplishment of the
organizational objectives.
• Middle level management generally consists of
heads of functional departments they are
responsible to the top management for the
functioning of their departments.
• They devote more time to the organization and
direction function of management.

16. • Most times they decide, but they also look for
guidance and direction from the top
management for strategy related issues.
• They act as a linking pin between the higher
level management and the lower level
management.

17. The role played by the middle level
executives
1. They execute the plans of the organization
in accordance with policies and directives of
the top management.
2. They make plans for the sub-units of the
organization.
3. They participate in the employment and
training of the lower-level management.
4. They attempt to achieve coordination
between different departments.

18. 5. They evaluate the performance of junior
managers.
6. They send the progress reports and other
important data to the top management.

19. LOWER LEVEL MANAGEMENT
• Lower level management is also known as
supervisory management because it is
directly concerned with the control of
performance of the operative employees.
• This level includes supervisors, foremen,
accounts officers, sales officers, and so on.
They devote more time on the supervision of
workers.

20. • Termed as tactical management or frontline
executives, these are the people who are
responsible for the performance of employees
involved in the actual day-to-day operations/
tactical activity in the organization.
• They are designated as supervisors in a service
setting or Foreman in a manufacturing setting and
are responsible to direct the employees in achieving
the targets.

21. • They implement the operational plans
developed by the middle managers and are
responsible for taking corrective/ remedial
action whenever needed.
• They take care of output variables like the
number of units produced, labour cost, the
inventory levels, quality control etc.
• They are directly involved in the daily
operations/ activities of the organization and
the role is critical in the organization.

22. • They not only take part in creating and
sustaining quality concerns, innovate new
methods, but with the proximity to the
actual work, they are expected to initiate
new activities, new methods, new processes ,
and new ways of getting things done.

23. Important functions of Lower level of
Management
 To plan and organize the activities of the
group.
 To arrange for necessary materials,
machines, tools etc. for the workers and to
provide them necessary working
environment.
 To provide training to the workers.
 To supervise and guide subordinates.

24.  To solve problems of workers.
 To communicate workers problems to the
higher level management.
 To maintain good human relations in the
organization.
 To send periodical reports about
performance.

25. CHARACTERISTICS OF A GOOD
MANAGER
• When it comes to what are those traits that
distinguish the good with not so good
managers, literature and also experience does
not provide a straight jacketed, all-
encompassing answer.
• A number of factors like the type, size, goals,
strategy, team, location, along with a host of
external factors like theCOVID-19 in the current
context play a significant role in the
organizational success, which impacts the
managerial functioning.

26. Successful managers, are characterized with the
following traits.
• Understand the vision and communicating it
• Independent thinking and assuming
responsibility
• Knowledge
• Taking the right decisions at the right time
• Demonstrating leadership and motivating the
team
• Empathy

27. • Conflict resolution :Conflict resolution demands
a calm, cool, objective approach from the
manager to provide a solution and manage the
stresses and strains of team, as well.
• Emotional balance :Research in psychology,
however, put forth the importance of the
emotional balance of the manger as extremely
important in handling the team and the ever
changing, uncertain, volatile business
environment.

28. THANK YOU ALL
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