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MU0011 Q.1) Explain the levels of Management.

Answer: Levels of Management refer to the segregation between the different managerial
positions in an organization. Depending on the size of the business and the size of work
force the number of levels of management increases or decreases. Levels of management
decide the chain of command, the amount of authority & responsibility assigned. There

are three broad categories:
1. Top level / Administrative level
2. Middle level / Executive
3. Low level / Supervisory / Operative / First-line managers
We will refer to low level management as junior management.
1 Top Management
The top management would consist of the board of directors, CEO (Chief Executive
Officer) and or the MD (Managing Director). The top management is the highest
authority of the organization. The top level management sets goals and policies. As a
thinking body, it devotes more time on planning and coordinating functions. Top
management is responsible for:
· Decides the vision, mission, goals and objectives apart from policies
· Provides guidelines and schedules for department budget preparation.
· Facilitates strategic plan & policy development.
· Appoints leadership team members.
· Ensures all departments work well with each other.
· Continuously keeps a check through teams on the external environment and its
impact on the business. Ensures necessary corrective and preventive action is
taken in time.
· Provides guidance and direction.
· Top management is responsible to all shareholders for the performance of the
2 Middle Management
Branch managers and departmental managers form the middle management. They report
to the top management. They spend more time on organizational and directional
functions. Depending on the organization size, the existence and the no. of layers of
middle management are decided. Middle management is responsible for:
· Executing organizational plans as per the policies and directives of the top
· Planning for the sub-units of the organization
· Employing & training of junior management
· Interpreting and explaining policies
· Coordinating the activities within the division or department.
· Reporting to top management
· Performance evaluation of junior managers
· Inspiring junior managers to perform better.
3 Lower Management or Junior Management
Lower level is also known as junior management, 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.
Their activities include:
· Assigning tasks
· Guiding and instructing workers for day-to-day activities
· Ensuring quality and quantity of production as per targets
· Maintaining good relations with colleagues
· Communicating worker issues, suggestions and recommendations to top
· Communicating goals and objectives set by middle and top management
· Solve employee grievances, supervising & guiding team members
· Training colleagues and team members, motivating employees
· Arranging necessary resources (materials, machines, tools etc.) for getting the job
· Preparing reports about employee performance
· Ensuring discipline amongst team and colleagues


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